What are people's thoughts on this?

Firstly, I'd say it looks pretty cool when guitarists have their eyes closed while playing. But the main practical implication of this skill is for sight-reading, where it obviously slows you down to have to look at your fretting hand to check it's where it should be.

So, it's clearly a good skill to have. I can do it to an extent, though I find it tricky if I'm doing something that involves moving up and down the neck rather than staying in one position and moving across the neck. But, like I say, it's useful and looks cool.

I wonder if people consciously develop this? (I notice that forum member Graham does it...)