I find it interesting... My biggest needles are a whopping size US 50, which I've used once or twice on those lovely, bulky cowls that are quick gifts. Although I don't think this kind of knitting is generally something I'd be interested in playing with too much, it would be effective for making a bath mat with some cotton rope or old towel strips.
It also reminds me somewhat of finger knitting:
For me, this kind of stuff is so fun to teach kids. I remember being at Girl Scout camp as a kid, making quick friendship bracelets by using the finger crochet method:
Have you guys ever tried any of these "hand knitting" methods? Do you think they have the potential to do more than just basic items?