In some recent research I came across this post from Ben Martin:
It's definitely something you should consider when considering your approach to an application rebuild. It has a high value for risk mitigation.
I will definitely put this in the bag of tricks for approach on rebuild projects. I can see a lot of situations where it would be valuable.
I can also see a lot of clients who won't go for it, but that doesn't mean it isn't useful.
Even ruling it out as an approach will have value to many projects. Offering it allows you to say it was there, but removed from consideration. This will help make it clear that the large, monolithic project approach (and related challenges) was explicitly selected.