I think it's very good practice
This entire answer is qualified by own experiences playing both tabletop RPGs and live action roleplaying for nearly 20 years and thus is going to be very anecdote driven.
I Know Something You Don't Know
One of the key things that I've learned in my many years of play is that as the GM, or the DM, or the NPC, or the Director, or literally anybody who is not a player character is that you have information that the players do not have. Generally, that information is an understanding of the perspective of the NPC without having to commit to the real life time commitment that their characters would do.
It's generally not reasonable to ask players to give that time commitment either. Your players have lives outside the table and much as I might want us all to spend 24 hours playing, the reality is we all have work in the morning.
That said, Gorthokk the Destroyer doesn't have work in the morning. Gorthokk has a full 24 hours to meet with the mayor; discuss the meeting with his teammates; take some time to walk the grounds around the mayor's estate; recognize that this mayor lives in a small palace that's for some reason located in a rather small town. Gorthokk thinks something is wrong here.
The Skill Check
As far as I'm concerned, there is no greater tool in a DM's toolbox than the skill check, and more specifically the knowledge skill check. It becomes the manner by which you can convey information behind the curtain to the players in either a straightforward or indirect manner, both have their purposes.
To exemplify this, in a 20th level home game I'm running the players are participants in the Blood War between demons and devils. They are located in a massive illusion created by Fraz-Urb'luu and are being assisted by the archdevil, Titivilus.
Sessions proceeded in a somewhat straightforward manner for about 8-10 sessions until last week. While taking a long rest in a Mordenkainen's Magnificient Mansion, all three of the casters were afflicted by horrendous nightmares which disrupted and cancelled their long rest.
I required several skill checks in response. The party's Illusionist handily succeeded on the Arcana check, so I informed her that it was almost certainly a dream spell. The party's cleric nailed the History check, so I reminded him that Fraz-Urb'luu (FU) is able to cast the dream spell 3 times per day. From then, the party put the pieces together and realized that dream requires you to be on the same plane as the target. Afterwards, it was a short logic leap to realize that Titivilus might not actually be Titivilus.
Players Know What Their Characters Know
In a subsequent session, the players spent time recognizing that there were multiple hints dropped that they didn't pick up on (i.e. a 'devil' that was being chaotic in his assistance in combat with demons; persistent use of illusions that allowed him to leave and come back; constantly staying with the party but not near the party; being cagey with his answers; etc.).
Additionally, the players began to plan how they wanted to proceed now that they've managed to eject FU from the group. One of the things they latched onto was whether they had any real time constraint because the disguised FU kept pushing that time was important. This was a situation where I as the DM needed to remind them that there are several good reasons why time was likely still critical and I did this again via skill checks.
Now I could've allowed them to think that time wasn't a major factor since they as players came to that conclusion based on a logical train of thought. However, that train of thought, skipped over several important stops that had major story elements that their characters know about. Given that players are playing characters, they are entitled to the knowledge of those characters. And the characters know that if they take a slow approach, it's entirely possible that Dispater will be killed and his essence absorbed by a demon lord which could have serious consequences for the stability of the Nine Hells and thus the multiverse. Presumably, this is bad, otherwise why would their god have sent them here to stop this exact thing?
It's not like this information was ever concealed from them, they knew this. But as players, they learned that information probably 10 months ago; for their characters it was maybe 6 days ago.
The Perils of Saying Too Much & Not Enough
Some years ago at a LARP I play at, we had a big battle which went very south for the players. Shortly after the start of the battle, the players' front lines were decimated by catapult fire that wrecked an otherwise good defensive setup.
My character was the commander for the players' forces during this battle. It was a fight that had been built up to for about 4 months of events thus far. As a whole, we'd gotten a plethora of information via knowledge skills and honestly, I felt some of it was contradictory (which isn't supposed to happen but c'est la vie).
Buried somewhere in that pile of information was that the enemy has catapults, but as it was presented it wasn't clear if it was this enemy or another bigger one. One could argue that I was supposed to pick up on it as being a key piece of information and definitely applicable here, but when the information was provided to me, there were no knowledge skills to help me sort out what was useful from what was worthless. And with the benefit of hindsight, a lot of it was worthless.
So in summary, the players lost the battle. And frankly, a lot of players were mad about it (myself included). Not because we'd lost, but because we'd felt cheated (I mean some were probably mad because they hate losing). But honestly, the biggest thing that annoyed me was that I didn't get to feel like a competent military commander. And the reason that I didn't feel that way is because I was denied the chance to use the knowledge skills I'd learned for that purpose. I'm a player playing a character, I don't actually have all the skills he does; the purpose of knowledge skills is to help bridge that gap.
Afterwards, when I spoke with the event director he didn't seem to realize that what was obvious to him wasn't obvious to the rest of us. But the fact is, he's the writer, he knows the motivations and plannings of his big bads. The players don't. He knows that the catapult information is important, but when you make it 11 point font Times New Roman and stick it in a pile of other information it doesn't really stand out as such. And he's not confused by enemies with similar sounding names, because they're all relatively straightforward for him since he's writing.