Sean,
While the left tree in your photo may encroach a little too far, I have little problem with one hole per course using trees in that general fashion, although I usually do it with a wide open fairway as sort of a "delayed penalty" (in hockey terms) for hitting the wrong side of the fw. As long as it's high branching, and about 2/3 of the way between LZ and green (or near the apex of a typical shot) there are ways to go over, under, or curve around it.
On tee shots, I will arrange a hole or two with a large tree at 180-200 yards off the back tees (again, matching the vertical apex and horizontal apex of a curve shot) to more or less force a curved shot to the best area, while leaving enough room on the far side of the fw for those who can't hit the requisite shot.
Where trees have to line the fw, high branched trees with turf below work best, to allow recovery.
In general, I find the corridor width has to be 225-250 feet to contain most shots within the trees. Anything narrower, and 1 in 4 tee shots will find the woods, which slows play and reduces fun. Can't always get them that wide, and really, a triple row sprinkler system covers about 210 feet, but it requires 4 rows to get the wider corridor. Of course, 4 rows is actually better, because the super can run the inner two rows to get the fw and reduce days, run time, or even shut off the outer two rows, except when absolutely necessary.
One of my early career memories was meeting Rees Jones, and somewhere in that conversation, he lamented narrow fw, forced on him because his client couldn't afford an extra row of sprinklers. Somehow, it was comforting to know that the big boys had the same problems I did!