Very good, I make my one and only household cleaner the same way, lol. I soak orange peels in vinegar for 3 - 5 days, pour off the vinegar into a spray bottle, cover the orange peels again, sometimes add more, I put some cloves in mine, and clean (dust), wipe down the counters, clean up spills...
Actually olive oil is very moisturing as is honey and both are good for your hair and your skin. Now if you have over oily hair, I wouldn't put the oil on hair.
As far as someone's friend saying the "recipe" was scarey, if she doesn't think all that stuff that is in commerically made creams...