This binding has become a favourite in some of the groups I belong to. In fact... next Sunday one of my guilds is doing a Finishing Party for some charity quilts - the tops are all done, so we're basting, tying and binding a dozen or so quilts. A couple of our more gung-ho members have volunteered to bind all of the quilts using this method.
It's also about the only way I will machine-finish a binding. I stink at that whole stitch-in-the-ditch thing because I always "miss" spots on the back; this method gives me a nice guideline and I don't have to try to catch the binding folded over to the back.