Yes
It is working for me! I'm using jboss tools
1. Create JSF project from template (jsf 1.2 + facelets demo)
2. Select tomcat 5..5.17 server (i don't have newer here)
3. Run the server and open the app
4. Edit .xhtml page in the editor and save it
5. Refresh the browser and i can see the change, and the application context was not restarted