Ran across this video on MetaCafe's website and though it was rather an interesting technique. I can see though where it may be illegal to do in some states. The way this gal shows it you have little control over retrieval when you hook one. A secondary line tied to the boat would solve that. I can see that if the fish was huge it could swim away from you for quite awhile before it got tuckered out.
From what I've read so far, jugging is mostly used for catfish. Catfish give off a scent to alert other fish of danger so you have to treat them gentily until you get them landed or you will scare off the other takers.