The most compelling reason for needing a process of interpretation for me is to fully understand the context of what I'm reading. The time, culture, and how the stories applied to them in that time help me better understand what I'm ready and what I can gain from it.
I don't believe I've seen anything like it but have heard the theory before. It's good to get a better understanding of it to hopefully help me glean more from what I read. I feel it's so easy to read scripture and not understand a thing I've read.
There are a couple of aspects of context that I think are missed regularly. Where does the passage begin and end, what ancient customs or worldviews inform the text, and how did the wider society regard the issue discussed are the three that really stood out to me. The challenge I see when trying to teach from scripture during a sermon is the time to really breakdown the scripture to explain all of these things. I've personally always enjoyed when a pastor gives the historical backing and cultural side of the scripture or the people being described in that book.
I'm really hoping to take these things and apply them to how I read the bible and how I teach from the bible.