theobrew wrote:the ratio of grain to water is way too high to allow conversion
Efficient conversion. You'll still get some conversion from a 'thin mash' even at this high of a ratio. Personally I'd minimash them, but I still think that you'll get some flavor from steeping base malts. They're just another specialty malt at that point though, so we couldn't call it a base malt correctly in this case.
Edit: Crush a little 2 row & steep it in some water at any temp. The water changes color, correct? The water has additional flavor, correct? You're obviously pulling something out of them. You can technically steep them then, you're just not utilizing them as an AG brewer would.