DS, that's the knot I use for leaders, I had problems with it breaking when using some of the heavier lines (50 lb test for halibut). But I have landed my largest salmon to date (42 lbs) on a cut-plug rig tied this way, I used it because I did not know the other way of tying it, but will use it now that I know how to tie it properly. Here's another link that may make tying it a lttle easier:
http://www.berrysbait.com/001.htm (go into the site, then go into "instruction", then "knots", then "steelheader egg loop")
It is indeed called a snell knot, this is due to the fact that some course fishermen use hooks withought eyes, and have to secure their line to a "spade end" hook, or a snell hook. This is a method I have seen used for attaching these hooks. I have been using it rather successfully in the past as a bait-loop, and for rigging tandem hooks in a rig (anchovies, herring, etc.).