Might work. I think it would depend greatly on the soil you have to work with.
I am concerned about the accuracy with which anyone could position and align the three pieces of rebar. (Actually, in my yard, you couldn't pound them in at all.) You're talking about having enough control over spacing between the rods to ensure the right sized center opening, and that will require placement of the third rod within, oh, maybe +/- 1/16th of an inch? Point is, driving rebar into the ground is more like blacksmithing than watchmaking.
Even if you can get the spacing correct at the base, you need to maintain pretty careful control of that spacing all the way up the length of the rods. Otherwise, if one side gets a wider gap between rods, your rockets will leave through that opening. So alignment gets pretty critical too.
The rebar itself will have to be pretty stout to provide sufficient rigidity. I don't think 1/2 or 5/8 is going to do (and rebar sizes that small can be easily bent and damaged while driving them into the ground). I would bet you will have to use 3/4 or even 1 inch stock.
If this is going to work at all, I expect you will have to rig some sort of tool to hold the rebar in position as you pound it in. It will have to be pretty durable if you use it to hold the rebar while you are hammering away. And if you're going to go to the trouble of designing and building a tool for positioning the rebar, why not just go ahead and build a proper tower in the first place.