SEO is so much more than backlinks. SEO consists of on-page optimization and off-page optimization.
You're talking about a backlinking technique, which is part of off-page SEO. I love checking the backlinks of competitors, it's a very easy way to build your backlinks. However, check the quality of those links! If you and your competitor have websites about guitars, and most of your backlinks are from sites talking about the weather, Google may punish you and your competitor eventually. Sure, you may rank well...but that ranking may only be temporary. Build relevant, high quality backlinks.
I personally do 14 backlinks a week, or 2/day. Very simple, and very natural.