i have never seen it done that way. its always cool to see the millions of ways to go about the same thing. i agree with hewligan though, if you have the tool for red eye removal it saves a lot of time.
The red eye tool can be useful, but sometimes gives too cold a rendering that looks unnatural. With a loose selection around the irises, Apply Image using the green channel (which is dark in the red area) as source, in darken mode, will give a more natural look. It more or less does the same thing as in the tutorial, but it's a lot quicker. (Dan Margulis is the absolute master of channels and color spaces. He often talks about the green channel for use in portrait enhancement/retouching. This technique is his.)