The only thing wrong with this is that we don't get to see Dumbledore pay any kind of price for his neglect.
This would also, with one change, make an interesting start for an Independent Harry fic. If, instead of reporting a dead child, the burglar rescued an abused child and raised him as his own, what might happen when Harry got to Hogwarts? Especially if the burglar was like Fagin and had begun training Harry in his craft?
Author's response
Fenriswolf! WOO HOOO! Ths s sooooo COOL! Now I've got four of my favorte writers...and they all like my work! Dances Snoopy dance!
I am developing a second page, where Dumblefutz does indeed get his. The Dursleys also get their comeuppance as do some of the neighbors.
Thee burglar takes Harry and turns hm into Olver Twist is a good idea for 'Independant Harry', but I was going more for heavy emotional impact. There are far too many stories where Harry is abused nearly to death, somehow miraculously survives, and forgives the world, before saving everyone. It works, but more frequently, such abuse ends up killing the child. (former cop, here!)
To answer your question, that would result in a Harry in Slytherin, and wreaking havoc throughout the school. (Sounds like fun!) Even more fun, if he teams up with the terrble twins and/or Hermione! I can picture Snape's face as he realzes Harry is in his house! Alorkin