Polished, I know I have seen that technique used somewhere before, but I can't remember the forum. It might have been the children in the documentary "Mad Hot Ballroom," but I would have to watch that again to be sure. It also might have been at an outdoor lesson at one of our community festivals in which a dance band was performing after the lesson.
It doesn't sound like a bad idea, especially for a group of kids who might find it fun as a starting point. I would have to say I would not try it, mainly because it might be difficult to keep it organized and cohesive.
When people do more of a "country" waltz, they are in more of an extended hold and moving more like a forward progressive. Is it possible it was a lesson leaning more toward doing a waltz to country music?