Well, it improves on risk (to the data, not the user) in torture situations, but I wouldn't say it "solves" the rubber-hose problem. And it only helps when a copy of the data has not been made.
Torture works (in situations in which it actually works, which are vanishingly few--in no way should this be taken as in favor of torture) by creating expectations of future suffering. Torture victims are made compliant over time, so it's more likely that a victim would have the wherewithal to enter a duress code early in the process than it is that they would not crack after prolonged torture.
Somewhat different perspective - torture works great, at what it's actually for. It's actually for oppressing a population you have control over, not specifically getting information. The getting information part is just a moderately useful byproduct. The torturers purpose is to terrify you, and your friends and family, out of having anything to do with the anti-regime forces. Considering that, whether you are actually guilty of anything may not matter, and whether any information you cough up is true doesn't matter that much either. Getting actionable intelligence against actual organized anti-regime forces is just a bonus.
If you're thinking that way, and the forces you're up against are too, then the only thing this really accomplishes is potentially protecting the information that reveals your actual comrades. And if you're actually in a situation where protecting information about your comrades and operations is more important than potentially avoiding torture, then you're braver than most of the people on the planet, and good luck - you'll need it.
Torture works (in situations in which it actually works, which are vanishingly few--in no way should this be taken as in favor of torture) by creating expectations of future suffering. Torture victims are made compliant over time, so it's more likely that a victim would have the wherewithal to enter a duress code early in the process than it is that they would not crack after prolonged torture.