I do not believe that there is any specific prohibition against stripping a wire mid span and looping it around a screw terminal. I'd be concerned that this installation technique has probably not been _evaluated_ for safety, and that there may be unknown failure modes caused by such an installation.
For example, the screw terminal as it is normally used would only have a single span of wire leaving the terminal, from one specific side only, since your loops are supposed to wrap around the screw in one direction. Using the 'mid-span loop' approach, you now have _two_ spans of wiring leaving the terminal, one of which leaves the terminal from the 'wrong' side. When pushing the receptacle into the box, these wires will put stress on the screw. There is potentially more mechanical force acting to break the connection. While I don't expect a problem, this is one of those things that might not have been evaluated for safety by UL or another lab.
The pictures that you post provide a strong argument for not passing the circuit through the receptacle, but still don't make the argument that the 'mid-span loop' will provide any benefit over pigtailing. Pigtailing does not pass the circuit through the receptacle, and just uses a single wire-nut, with 3 wires rather than 2.
-Jon