Added the following video to OP to show what I am talking about for those who haven't tinkered with Hide much yet.
That also looks like an extra-ordinary boring way to play. I mean - it's clearly an exploit but at the same time the downtime between turns is horrendous. If someone wants to play that way it feels like the punishment is pretty apparent. Unless you have a good book to read between turns.
However, in Multiplayer it allows the rogue to avoid being targeted most of the time for attacks while the mobs will go after someone else. I am not sure if that is intended behavior or not!
Can you hide during combat or is that supposed to be not allowed in the PHB?