Yes, it works quite well. I just did it last week. After I damaged the display of my iPad mini I bought a new one. The old pad was still usable, therefore it was easy to create an up-to-date-backup-file with iTunes. Some experience may be worthwhile:
- iOS version has to be the same on both pads
- Setlistmaker is included with all databases, songs, sheets etc. Up to today I haven't found any lack
- all other apps of the old pad have been installed one by one on the new pad - even in the same version, if this was an older one
- the new desktop looks exactly like the old one
- the login has to be renewed in most apps, such as MS Office, magine etc.
- just one thing I didn't think about beforehand: all emails in the Mail App are gone! They are NOT included in the backup.
Keep having fun using it.
Best regards from sunny Germany