I was taught this during basic PPL training (in a PA-38) as a way of achieving a specific touchdown point from a glide approach.
Hmm, I wonder if that is a part of the approved training syllabus - I've never heard of it. Certainly the Piper Flight Manual would make no mention of it - so yes, it would be top rung of the ladder type stuff. So, yes, the pilot would become responsible for the burst tire, or hard landing if it did not go well.
That said, on a PA-38, you'd be more safe, 'cause changing flap selection is kind of like holding your hand out the window on those!
If I were type training a pilot, retracting the flaps as described would be a fail, the same as if I were type training him on a ladder, standing on the top rung would be a fail. Perhaps others would be more liberal....