I have been using it and it has been very useful, but I still find more handy to have a button or option to hide the read post when you are on your feed.
If I want to see a post that it is no longer shown in the feed because "I watched it" I would need to disable this feature altogether within the settings.
Maybe it is because many Reddit apps thought us this way, but I think this is more versatile.
Look at Summit which implements it that way, or more recently Voyager.