we did last year. After our install we put about 18" of white rock around the pool. We first went ahead and added some weed fabric to cut down on the grass and weeds from growing right next to the pool, then added the rock.

I too was worried about what would happen between the rock and the grass but I just ended up using Roundup for the most part. Yes I had to weed eat a couple of times but for the most part it looked great and we were very happy.