In reply to mike kann:
Thanks for the thoughts, mike - hadn't considered the difference between static and dynamic forces in this case, so will definitely give myself that talking to.
Neil, I imagine the failure is due to the upper (live) rope pulling inside the dead rope and either locking up completely or suddenly unlocking.
For anyone wondering why I'd want to do this, I was really just interested because it seems practically quite simple, but as no one talks about it I suspected there were some major downsides. I can think of some extreme (and unlikely) situations where it might be the better option, although anything that stops the belayer holding the dead rope would probably also make it very difficult for him to pay out slack as well.