The part about installing plugin seems fine for me. I mean, you’re basically distributing gradle script alongside with your gradle plugin, which will download and install plugin. You obviously have to be careful if you want it to be executed automatically (e.g., it shouldn’t re-install plugin if user has added new modules to their project), but that’s Gradle technical details.
The part about “output folder” still sounds a little bit fishy for me: that’s a basic “indexing” functionality of IDE, and it should be none of the plugin’s concern. I certainly miss the whole picture of your plugin here, so maybe it does make sense for you, but that’s a bit suspicious, yes. We can chat in DM about nitty-gritty details if you would like to