The only problems I've had with PS/2 KVMs are mice that need special drivers - they work properly on boot, you switch to another PC and the driver thinks the mouse has gone. When you switch back to that PC the driver doesn't pick up on the fact that the mouse is back, so you lose any special functions (scroll wheel, extra buttons, etc.) But they still work as basic mice.
PS/2 KVMs are cheap e.g. on ebay, so it hardly matters that you are wasting the monitor connection.