Yes I've seen this technique used effectively a number of times in various forms over the years, including in game companies I've worked at.
The nicest variant was the inclusion of a "build laptop" in the budget for the projects, so that there was a dedicated, project-specific laptop which could be archived easily enough, serving as the master build machine. In one company, the 'Archive Room' was filled with shelves of these laptops, one for each project, and they could be checked out by the devs, like a library, if ever needed. That was very nice.
For many types of projects, this is very effective - but it does get tripped up when you have to have special developer tooling (or .. grr .. license dongles ..) attached before the compiler will fire up.
That said, we must surely not overlook the number of times that someone finds a "Gold Master Disc" with a .zip file full of sources out there, too. I forget some of the more famous examples, but it is very fun to see accidentally shipped full sources for projects, on occasion, because a dev wanted to be sure the project was future proof, lol.
Incidentally, hassles around this issue is one of the key factors in my personal belief that almost all software should be written with scripting languages, running in a custom engine .. reducing the loss surface when, 10 years later, someone decides the bug needs to be fixed ..