Absolutely, I find this approach gets the right mental gears turning as well. The problem comes up most often with take-home assignments though, where students

Absolutely, I find this approach gets the right mental gears turning as well. The problem comes up most often with take-home assignments though, where students are more likely to copy-and-paste a couple lines from somewhere because you haven't given them a full program. If anything, an IDE might be better because it'll give more localized feedback and people are more likely to react to the red squiggles :)