The funny thing is I think this is a great idea for employees and I'd encourage things like this even amongst my own (though it's just contractors for now!) But for me? I'd always choose to work longer and I love it. Maybe there are key differences between growth stage, finding-their-feet businesses and those comfortably bringing in 6/7 figures a month though ;-)
From my own experience I find that this possibly comes from the knowledge that you set your own hours and aren't trapped. I work all the time, but I've noticed a few times that when I am stuck working (say I have to stay until 9pm and know it rather than I choose to stay until 9pm) the experience becomes different for me at least. It's the feeling that I control all that work that seems to help in the "work all the time and love it" appeal for me.
Another example. I normally always drive to work. But just the thought that I don't have my car and therefore can't leave until the car is returned makes the experience different for me.
This applies to many things. We write on HN not because we are told do. But because we decide we want to. I don't know that I'd like someone telling me to sit up late at night with the laptop and write comments on HN.
You have the choice to work longer. An employee must do as told. Such is the importance of giving the person a reasonable period of rest. If not, then the person will feel like a slave and just do the absolute minimum to get by. Ive tried both approaches and the one that treats people like (surprise!) people works better than the one that treats them like robotic slaves.
Yes. They have their product/market fit and can comfortably delay features and defects for another release cycle while they experiment for a month. Depending on the start-up and their capitalization and runway I think a start-up may be able to execute something like this and if they are in a position to have the resources to delay product/market fit for a month they may even find a great idea to pivot off if what they are working on day-to-day isn't working.
Eh, that assumes work volume directly correlates to getting closer to product to market fit. There is plenty of research within the study of behavioral economics at that shows when people get to close to their products they tend to become blind to much easier solutions. Taking time off in a very early stage company especially after a less than successful launch can be equally efficient.