Earlier quoted context omitted.
In a sense, they do exactly that! But since there are only two single-digit numbers in binary, it makes for a pretty short table.
Hardware multipliers often use a sort of base-4-ish lookup table trick as well, using the Booth-Wallace algorithm. Booth's idea is to rewrite one of the inputs in base (usually) "4", except that the digits go from -2 to +2 instead of 0 to 3. (That's five possible digits! This helps the rewriting stage not have to propagate carries. Carry propagation is very expensive.) You can use Booth in a base higher than 4, espec…
That's base 5 then. It needs to go from -2 to +1 if you want base 4