Yes the method works OK, but what you said is not entirely accurate, which is what I tried to explain before.
First, the Flash Utility cannot correctly dump the firmware from drives manufactured from about July 2011 onwards (which include the C and D iHAS series). The firmware dump appears to be created OK, but in fact if you look inside of one of these firmware dumps, they only contain garbage (random data). This is the root of the problem, otherwise reverting the drive to an earlier firmware version would not be a problem in the first place.
This method (which has been called a 'tool' for some strange reason) is basically using the good old Flash Utility to miss-flash the drive on purpose, in order to force the drive to enter in boot/core mode. Once the drive is in boot mode, it can be then flashed using any earlier firmware released by LiteON, using LiteOn's official exe flashers. In this way, one can get around the fact that the Flash Utility doesn't work properly with these drives and the unavailability of unscrambled firmwares (*.bin dump files).
The 0L05 version you see after miss-flashing the drive in this way, is actually the version of the drive's bootcode, it is not a firmware (well, the bootcode is actually a small section of code located at the beginning of a full firmware file if we really want to be pedantic). The firmware itself is basically the 8L05, 8L0A, etc. The 0L05 is the bootcode used by the 8L05, 8L0A, etc, firmwares. To use a quick analogy, the bootcode is like the BIOS of a computer while the firmware is like the operating system of the computer.
So, if someone wants to downgrade their current firmware to an earlier version for whatever reason, then one can only use this method if an earlier firmware release exists. If an earlier firmware is not available, then one cannot revert their firmware using this method...