I like this idea on the surface. The flipside though is that if everyone's reading the doc for the first time right before discussion, it doesn't allow for much depth of analysis. Do you also send the materials out beforehand?
On the other hand, I am indeed able to add a lot more value as a reviewer if I can read the document ahead of the time. So whenever I am the prime reviewer, I request the document to be sent one day ahead of meeting even if it is incomplete at that time.
Besides, very few people in decision making positions have time to study all the prep material beforehand. I sure as hell don't do that when I have back-back-back meeting schedules.
Nevertheless, I'm a supporter of the approach and have introduced it into the most important review meetings that we hold in my group. (We do bar laptops and other electronics, other than video conferencing equipment.) Results after 18 months seem quite positive on balance.