The stove you describe is effective and I believe it is very widely used in the Gril Scout program. Probably anyone who has ever been a Girl Scout has made and used one or at least seen one used. I believe there are typically a number of vent holes ringing the top just below the cooking surface.

This is a great camping stove, but not so great for impromptu survival since making the buddy burners requires a fair amount of pre-preparation.