Seems like a great way for employees to become more intimate with the product they’re developing. This, I would expect, would lead to developing a better product and user experience.
Seems like a great way to assist the engineers in just finding new jobs...
Use cases, flows, and product paths seem logical on a whiteboard. However, the real world often introduces nuances that significantly alter use in micro ways.
The objection to interact with customers from engineers I believe is more due to a social aversion, introversion, etc rather than a defiance of not doing the delivery. Engineers can often be afraid of unknown social situations - which is fair.
If I were the CEO, I'd have engineers go in packs of 3 engineers at first for 3-4 months. Then pair to group of 2 with one as a "ride along, no interaction" for moral support.