Does anyone else employ this strategy of just hanging back and letting your opponent beat themselves?
No, never! It would maybe work against weaker players, but where's the fun? And stronger players will use the time to maximize the effectiveness of their pieces, cramp your position more and more, and finally attack successfully.
I have often found that many players I play against will completely self-destruct if you simply get a solid position and hold back for a while. After about 20 moves they completely lose their mind and start saccing pieces for no reason and making random pawn moves. Take the following game I played on here recently for example...
I think this is why I have often been successful with the Caro-Kann in the past, as long as you stay solid for long enough many players seem to start playing against themselves.
Does anyone else employ this strategy of just hanging back and letting your opponent beat themselves?