This is true, but is effective only if the dogfooders' feedback is accepted and worked upon. Which is not the case, I can tell you this from first-hand experience (currently work at Msft).
Also unleashing and forcing tech savvy people to use immature tools is only asking for trouble when you don't have allocated enough manpower to deal with the fallout (that is, incessant downpour of improvement feedback). One cannot just force engineers to dogfood tools and then ignore them. This is precisely like Win-8 era mania, only this time it's infecting the whole company not just single org!