Oh sure, it has its benefits, but it also has its problems. Some schools immediately reject as they have a spell of envy at knowing they are second choice. LSE for one are clearly bad for this, or were.
Otherwise you get schools like Nottingham. They held someone I knows situation as "applied" until they knew their oxbridge result had completed. As it did, and they were accepted, Nottingham posted the future oxford student a letter of "ding". That would catagorise as "embarassing".
the problem is schools can get wound up in their own importance about your application, which it has nothing to do with. The candidate who applies to a whole host of ultra-elite and elite schools may actually have since decided they wanted to go to school X. But, because they got a big problem that the person had a shot at Harvard, they ding them.
As for interviews, I would quite happily tell them where else I have applied. I am pretty sure they will have a good idea anyway.