I'm an aerodrome controller at a single runway airport. Spoken to colleagues "across the ditch" who have operated this. Most don't like it much. Some have seen it fail to work in near spectacular fashion. Personally I wouldn't be too keen. If I worked at a place where this was SOP, I'd attempt to arrange the spacing so that there were no "dead-ringers", ie if the stopping distance was exceeded the other aircraft would have already passed the intersection, or been able to go around.
PortStrobe, I would imagine that in the event of a double IFR go round in this situation, the response of the crews involved would have been similar to yours, perhaps with the additional guidance of TCAS. It would also not be surprising to see a couple of very early turns. I would hope that the crews involved would happily accept that the concept of a standard missed approach (if applicable) would be defenestrated in the interests of noise abatement. All in all a fairly fraught situation I hope never to see, nor to experience as a passenger.