1. i guessed that and understand it.
but: the player will be never able to walk on soft curved hills and slopes...

(okay... when the tiles are small enough... but look at my graphics and tell me to cut them into 16 pieces each!)
2. of course the empty space around a sprite is very good covered with your method. i like that method, really. it makes defining col. masks really easy.
but i thought of ... say, a really huge dragon. ten times as big as your player. at the moment one can either be blocked by the dragon at a whole, or not.
imagine the dragon has a bright red orb at the end of his tail. but you can't reach this orb, because the whole dragon is between it and you.
now, the dragon has armor at his legs. the player can destroy the armor of the arms, then he can go "into" the dragon and destroy the armor of the legs. now the way is free.
note the three different masks i would import to achieve this.
i think this feature would make sense, when the sprites are so detailed that they have "fore- and backgrounds" where the player can walk between.