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I have used a smaller version of this in my most competitive IG lists. It can be a viable tactic vs. some armies at certain times and in a limited fashion it can easily be worked in for minimum points cost.

Tucked away in my 1850pt. guard list are three 10-man squads with autocannons, meltabombs and one squad with a commissar. In most games I throw the whole 31 man grouping into one unit and sit. I don't always have to do it, but it's a possible tactic. When they are grouped together with the commissar they are about as non-threatening as anyone could be, especially compared to the rest of the army. If anyone gets close to the main part of my army I have the 31 man blob to jump on them and hold them up for a few turns, sometimes even winning combat over the long haul (say against a 5-man assault termie squad who just came out of a LR to attack the tanks/artillery in the army).

I have thought about adding power weapons to the sarges and commissar to add much more punch, but then the points start to go up and the unit becomes more of a visible threat from the onset of the game.

In a limited fashion, the use of the IG blob is a very viable tactic. I'm not sure I would use it to the extent of the OP, but it is not hard to add the tactic to your IG force for the price of a lone commissar and in games the situation mightcome up where the unit will be successful for minimum investment.