I've played in a lot of games that used it, and I think it was a great rule. Most people I have gamed with never see the point in arbitrarily limiting skills based on some archetype; it prevents the mechanics from meshing with roleplaying.
Example: Take the Fighter (lets assume a Core only game for discussion). If my character is a nobleman from the Free City, I would logically have diplomacy skills to represent my affluent upbringing. Maybe Knowledge (Nobility and Royalty) or Heraldry or something like that. But under the current ruleset I cannot do that because someone arbitrarily decided that all Fighters learn the same skills in "Fighter 101" with no room for deviation based on background. So if I spend the extra points on cross-class skills, it severely limits how well I can do it in-game, even though realistically my character would be good at it. The background is trumped by the game rules for no good reason at all. Maybe it's just my experience, but saying my character is a nobleman but having a pathetic Diplomacy skill is going to get me laughed at the second I try (and fail miserably) to use Diplomacy on someone.
What I would prefer to see is the option for all classes to have a couple of set class skills representing what the vast majority of those classes know, and then an extra "choose an additional three skills, based on your character concept and background, to become permanent class skills" that would allow custom-tailoring of skills based on the character. With a rule like that in effect I could have my noble fighter who actually has some courtly skills.
Before anyone brings up multiclassing into Bard or Rogue for my previous example, that just serves to prove my point. A Fighter type should not have to multiclass into a non-Fighter type (or hell, this applies for ANYTHING) just to realize a basic character concept. That's my issue with the way classes work in 3.5 as it is; the class system shoehorns you into someone else's vision of what a class should be and gives you absolutely no room to modify that concept without judicious multi-classing into other archetypes, the end result of which means that you need to wait several levels in order to effectively do something that you should have been able to do from the start of the campaign.