I don't think it's necessarily better or worse than email. As the hiring manager quoted in the article said, for candidates who made it to the final phases of the process it can seem more cordial. But I can see how it might be cruel to do it to new graduates, who are both potentially less ready for rejection and more busy with the job search process.

That said, it can be horribly executed. Last year after several interviews with a large company, I got an email from a recruiter who hadn't been involved in the process up to that point, telling me to expect a short call within a certain time window. I kept my calendar clear, but didn't get a call, so I sent a polite email offering a couple of times the next day to reschedule. After hearing nothing back for a few days, I got another email with another window. The recruiter also missed that window. This went on for a few more days until I suggested that they just get to the point over email, a few minutes later the recruiter called unscheduled to tell me I didn't get the job. At that point I feel like it was more awkward for the company (big one, name begins with "A"). I think I might have audibly laughed when the recruiter asked if I'd be interested in other positions there.