Gorgi,
You are right, this is different from the "original" rooting in a bag in that is uses some organic material. You can still start root initials in a bag, as before. This replaces the step of the plastic cups. I bypassed the initial rooting in the bag because I wanted to see if organic materials would, as I suspected, help initiate rooting and that seems to be the case. I had heard of dipping/soaking them in willow-tea and an aid to rooting. Hormone had given very bad results, So I theorized that some organic "juices" might be beneficial, and that does seem to be the case.
If current results continue, it will reach near 100% success, and much quicker than the previous method.
I also think that by burying about 95% of the twig, the moisture balance is easier to maintain. I have some cuttings that were 10-11 inches long, and when buried in 8" of rooting mix, they have pretty much died back (dessicated) to the soil line, but are fine below the soil line and in most cases, so far, sprouting from lower nodes.
By going straight to the plastic bags with rooting mix, I am using less labor than if I bagged them the old way, and then transferred them to cups. And these take up much less space, so I have moved all of my rooting twigs from the house to my small greenhouse, which now have something on the order of 1100 little plastic bags in it.
Cheaper, faster, easier is an on-going quest.