On 7206's 11.(2)P is crash city so I wouldn't recommend it at all. 11.2(8) seems to run into a few strange problems too which we haven't been able to figure out. We are running 11.2(11)P on one 7206 without problems (so far).
Upon its release, 11.2(11)P on a 7206 was so bad for us we had to back out of it within minutes of installing it. Cpu was pegged at 99%. The source of that may have just been discovered yesterday in 11.2(12)P (and 11.2(11.3)P) and was probably happening in 11.2(11)P and earlier. SHO ALIGN showed millions of misaligned memory references. The trace led to frame relay compression code. Even turning ALL F/R compression off still had the problem because the code path was still there until the next reload. This is now CSCds87720. The port with the problem is on a PA-8T. FWIW F/R compression runs well in 11.2(12)P on a 4700M. WFQ has also been a source of grief in recent 11.2 7200 code - just turn it off. And one can't go back far at all in 11.2 space with PA-2H Rev-B cards that are only just being supported.