Your friend’s approach has the same aim as “regular” sleep restriction — it helps build sleep drive. Sleep drive disruption is one of the factors behind chronic insomnia (the others being body clock disruption and arousal).
I don’t recommend your friend’s approach to clients I work with since it removes any opportunity for sleep after the initial awakening. I see no reason why it can’t help some people, though — since, like regular sleep restriction it helps to build sleep drive.
I would emphasize the potential for high levels of daytime sleepiness with this approach and encourage anyone who tries it to be vigilant for signs of excessive sleepiness during the day, especially when this could be a danger (for example, when driving or operating machinery).
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