yes it works, and yes the MySQL manual offers it as a solution, and NO it's not best practice.
For one, you must shutdown the mysql server before you copy the files.
(unless you are feeling lucky).
It is far better to use mysqldump to create a copy of the databaser in SQL statements and import that back into a new database.
Added bonus: this also works through the mysql commandline tool,
so you can make remote copies using only mysql. No ftp, no NFS, just mysql.