It can be a very effective systems, as the lack of open lines can frustrate his opponents into over pressing and blundering.
I have lost at least once to this system (back in 1993) where the game basically followed the above script. I kept trying to open the position on the kingside, but did not succeed in doing so in an effective manner. Karl however did open up the queenside, allowing his heavy pieces to get into my position. Despite all this, I was still winning for most of the game, until a few moves before the end (maybe I was in time trouble), where I blundered in a bishop ending and resigned a couple of moves later.
Press,Shaun - Galli,Karl [B07]
Tuggeranong Canberra, 1993