I am far from an expert in the details of different estimation algs - but offhand I see nothing hugely wrong with it. The only obvious weakness is in the fact that there are going to inherent assumptions in how you combine the M's for a global goodness-of-fit. My guess would be that they are less distorting than most regression algs (this being a kind of regression), but I'd have to play with it to figure that out.
FWIW many regressions are ok in my opinion. Yeah, they exaggerate, but not too much. The real problem is when there are multi parameter internal models inside the regression. Give me one of those and in 24 hours I can turn an utterly failed trial into a success.
Random aside - recently it has become very popular to use MMRM in analyzing datasets. This is a good example of the fact that a lot of statisticians (particularly academic statisticians) are always trying to find ways to "increase power". But the FDA, rightly, pushes back. Almost all such power increasers do it by ignoring real world issues that are, often, not obvious at first. See http://onbiostatistics.blogspot.com/2014/06/is-mmrm-good-enough-in-handling-missing.html . This debate provides a good window into the problems and the camps (essentially academics vs real worlders).
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