I think it only works if you have the right kind of relationship with your ex and if you're splitting up....what's that likelyhood?
My DH has a difficult ex. When they first were working toward a divorce and he moved into the basement, she broke into his locked room. He was told by the cops that there was nothing they could do, as it was a mutual property state. Leave her in "their" home...riiiight.
I also think that this nesting idea only works if the parents don't move on. My DH and his ex both remarried. DH and I had another child. So what then? Do the new spouses and kids get to wander back and forth? Do we live in a tiny apartment b/c we're supporting the big house the sks lived in? Do DD and I lose DH every other week while he moves into Casa de Ex?
Friends of ours split up. They determined that they would keep the house. Further, they decided that the father should be the primary caregiver so he bought her out. The mother moved to her own apartment nearby, where the boys visit her frequently. This worked fairly well (except for things like her feeling too comfortable and taking his baking supplies without talking to him). The boys kept their home, and one parent stayed with them in that home. They had security and still got to see both parents. The parents could relax and have "their" space during their time with the kids.
I think, too, that kids need to decompress between households and if the house is TOTALLY Mom's or totally Dad's, then they can have a more relaxed experience. No anger over Mom burning candles and Dad hating them or Dad bringing over the dog that Mom can't stand, etc. No Mom or Dad feeling edgy all week over things done differently.
If a judge ordered this for DH, it would have been devastating.