Yes - to the extent that fabric is just a framework for building shell deployment commands and could run the shell command.

I think there's a lot of (forgive me) synergy from pairing pip, virtualenv and fabric together though: pip can easily install a project into a virtualenv by checking it out of a source code repository (currently git, bzr, svn, hg I believe). Rebuilding the environment then is just a matter of "freezing" the current virtualenv, transferring the list to the host and building an env with the appropriate packages (down to revision #) that's a "put" and a "run" - two lines in a fabfile.

The article links to one of my blogs which links to the slides from talks I did on pip, virtualenv, and fabric for Baypiggies a few months ago: http://simeonfranklin.com/blog/2009/mar/28/baypiggies-presen... if you're interested...