If you have been dog piled, facing vastly superior foes, and you plan to go nuclear it is a great tactic. It is true that you will still lose infra and to a lessor extent tech, it does drastically slow the hemmorage of your war fund. If you have Manhattan Project it is even a greater tactic, it helps you hold on to your money, stay out of bill lock and purchase more nukes.
A nation with Manahattan Project, a large war chest and max spies can optimize damage and sustain said damage for a long time using this tatic.