Yes. It is standard practice in voice-grade two-way radio. In that
application distortion is less important than long range
intelligibility -- so the trade-off is made.
I've built one of these and it does not eliminate the odd-order
intermod. In fact, that's the one thing it can't do. However, it
totally eliminates both even- and odd-order harmonics. For example if
you do the dual tone test with 800 and 1000 Hz into the RF clipper,
you'll get 600, 800, 1000, and 1200 Hz out (due to third-order
effects, higher order effects certainly likely at some amplitude).
However, 1600, 2400, 2000, and 3000 Hz harmonics will be absent.
For SSB radio, conventional clipping in the baseband requires
extraordinary PEP in the transmitter. Of course this is highly
undesirable. (Do the Hilbert transform of a square wave.) While
increased intelligibility claims are true, the best reason for the RF
clipper is due to the high PEP required if conventional and otherwise
effective baseband clipping is used.
Craiglow and Werth patented a baseband version of the RF clipper for
Rockwell-Collins. It requires a Hilbert transformer. I wonder if the
whole thing would be better implemented in DSP these days. At any
rate, "RF clippers" eliminate harmonic distortion in instantaneous
clippers.
Craiglow-Werth patent (expired):
http://www.freepatentsonline.com/patents/us/441/4410764/4410764.pdf