This does not teach you multiplication as much as it teaches you a trick to get the result of multiplication. I doubt anyone is transferring this abstraction that results in the answer into something they can do in their head or extend on paper to larger numbers. Teach kids to open the calculator app on their phone rather than to do this. No fast way to learn multiplication other than to practice it.
I agree, I don't see how this actually teaches how multiplication actually works. It's a clever method to avoid solving the problem the classic way of using a memorized multiplication table and breaking down the problem into smaller segments. I don't even see how this saves you time once you get up to speed on either method. The only difference is that with my old school way I can explain to you why I get the answer…
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> It's a clever method to avoid solving the problem the classic way of using a memorized multiplication table
Do you think multiplication actually works by means of a multiplication table?