Yes, this technique is in regular use. It requires either uncorrelated noise or a correlated ramp or triangle wave imposed on either the signal or the reference. Uncorrelated noise is often simpler to add as there is very often already noise present.
Usually called either oversampling or dithering.
http://www.atmel.com/images/doc8003.pdf
http://www.st.com/web/en/resource/technical/document/application_note/CD00177113.pdf
From Wikipedia on the meaning of "theory" in a scientific sense:
A scientific theory is a well-substantiated explanation of some aspect of the natural world, based on a body of facts that have been repeatedly confirmed through observation and experiment. Such fact-supported theories are not "guesses" but reliable accounts of the real world.