Well, not necesarily grossly inefficient - but it's just useless work. I don't generally microoptimize, but there's absolutely no gain to be had by the less efficient form, since typing
do { local $/; <FH> } instead takes no more programmer time and doesn't make maintenance any harder. So it's a case of simple economics.
</rambling type="short"> :-)
Makeshifts last the longest.