I have tried it. Did not work as well as promised, but better than expected.
I am not convinced it will always work. Effectively, it will work on species that produce a lot of callus, and are strong. It is not worth the hassle on small wounds (Say, smaller then 3cm in diameter) as these smaller wounds heal over in 1-2 years anyway.
It is a form of grafting, but grafting the bark back on itself. Only if enough growth is present, will it take, that is my assumption.