The technique you have just demonstrated is best suited to kits that have a votive candle and cotton balls in them, and yes it works very well indeed.
Just as a point: You don't "drip wax on to cotton ball's", you melt the wax and dip the cotton into it. It gives you a firestarter that burn's in much the same fashion as the technique you have just demonstrated.
Its all ways a good idea to leave some of the cotton "dry", that is to say unwaxed to serve as a wick.
I am aware that the survival kit reviews on the main page emphasise that candle melt in hot weather, however a candle and cotton wool give you an excellent fire starter in cold enviroments and may be used (with caution) to warm up emergency shelters. Especially if the situation makes a fire impractial.
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I don't do dumb & helpless.