Well yeah, I suppose this method would prevent a lot of fish (even lsd's) from getting gut hooked.
I was taught a similar method for cod fishing from the beach with live bait.
Tie a small baited hook to the bend of a larger hook. Then a small fish takes the small hook and is trapped, then the big fish comes along and eats the small fish and the large hook.
it works well in the respect that a small bait can be cast a long way, then a big fish can be had.