The obvious problem that I see in the rocket-engines-on-a-wheel setup is that it would be spinning through its own exhaust plumes--which means more friction, vortices, etc.
The second problem would be that you have flames spinning all over the place, so you do NOT want to approach the wheel--plus anything that is within a couple dozen meters of it will need to be flame-resistant.
In all, it's probably more useful to turn the whole thing inside out and use a turbine.