I don't think pilom is arguing looping the rope around your hand; he's arguing to zig-zag the rope a bit so that he force pulling on it tried pulling it through your fingers (pinkie first), perpendicular to the direction of the rope, instead of parallel to it, so that it can slide out of your fingers.

I am not sure that works with tug of war ropes, though, as they, given the forces used, are too thick to allow for that zig-zaggy bend.

I certainly don't see it in photos on http://www.tug-of-war.org.uk/towtactics.htm