We use this process to make some of the harder more nebulous decisions that require a bit of research and investigation from the entire team. While it does suffer a little from "decision by committee" we haven't ran into it as a problem in practice.
It's a great way to give people a chance to try and introduce new technology, processes, or paradigms. If they're committed they'll get the entire team excited and involved. If the team isn't interested it doesn't make it to the end of the process - and that's ok!