I particularly enjoy the spirit of this strategy because it places the students and teacher on the same level of knowledge. Since the questioning is reciprocal, students might not feel as if they are being "taught at" as much as they get the sense of exploring a text collaboratively. Although this strategy might not make sense for those students who do not regularly reference their texts when answering questions, it might serve to illustrate the difficulty of doing so if the questions are challenging enough. The goal of this strategy, in my mind, is to prove the utility of reaching for the text when questions crop up rather than struggling through it and getting frustrated (with the text often on the desk in front of them!).
You could also get the added benefit of the students trying to come up with really difficult questions (thereby engaging those critical thinking skills) in order to trip their teacher up. In this way, you're disguising some really deep thinking about a text as a way to challenge the teacher's authority!