It was already popular to do this way even before the rule change (fun fact: Chuck Norris out of all people did it to Randy Savage in a Walker Texas Ranger episode, lol), so it wasn't really an adaption of the technique especially for the rule change. I usually did kata guruma like that in randori before the change, because i like the strong pull you can create with the grip.
But yeah, i think it wouldn't have disappeared either way, because the technique is uniquely well suited against immovable judoka and therefore too valuable to just let go of. Professor Kano added it to Judo especially because he was unable to throw a guy named Fukushima whom he was unable to move. Because of that, he actually talked to Sumo experts first because Sumo obviously focuses on moving somebody heavy, but he couldn't throw Fukushima with Sumo techniques either, which is why he looked into a western wrestling manual and finally managed to utilize this specific technique to throw him. Fukushima ended up committing suicide for unrelated reasons by walking into a river and hitting himself over the head with a stone, falling unconscious and drowning.