When I think about my own campaigns, though, I don't do this. And this week I thought about why. It comes down to awkward transitions. My style of game is to keep the players thinking and gaming in-character for as much of the session as possible.
To stop and ask out of character, "Mike, what's this guy look like?" or "Jason, there is an inn in the village - please give me a name, description, and a couple interesting qualities about it." is to stop the flow of the game for me.
I try never to say a player's name during a session, and just use their character name. This keeps me in-character as GM as much as possible. And to rip players out of in-character mode and have them think as players to create game details...well, I believe that's my job so the group can stay in character as much as possible and have an immersive experience.
So it comes down to awkward transitions for me. I'd like more player co-creation. But transitioning between in-character and out-of-character mode is tricky.
I might post this as a tip request in the newsletter, but I thought I'd ask you clever GMs first for your reactions, ideas, and advice.