I have never heard of a DM recommending this. In fact, in my experience, it is quite the opposite. I have seen DMs absolutely anal about the MODs--sometimes absurdly so. A DM in Bali panicked if we took 32% below 60 feet. A DM in Cozumel would not let me use 32% on a dive planned to 80 feet because he was afraid I might momentarily lose buoyancy control and plummet below the 111 foot MOD.
As for getting O2 toxicity on a NDL dive using an AL 80, I recently ran into an older document (can't remember where) that expressed the opinion that you can't get toxed using a standard nitrox mix in an AL80 because you can't exceed MODs long enough to get a hit. You don't tox just by straying below the MOD--it takes a while. All the cases I know of are on technical dives, and the violations were significant.