I find this to be an effective approach to dealing with a friend or loved one that has disappointed me. People talk too much nowadays. Talk is cheap. Words mean nothing. You know when some pretty obvious stuff can be said but you just kinda let the silence say it? That's what I'm talking about. I've grown tired of the drinking, the drama, the doing of stupid dangerous things.
Does anyone else use this approach to get a message across?
Everything in moderation.

Once you're past your limit, severing ties can sometimes be the only effective option. However, I think the things you listed are only that drastic of a problem in a very tiny percent of relationships/friendships. You should make clear where you stand ahead of time and then not be a doormat.
I'd guess with the vast majority relationship/friend problems the silent treatment is a horrible way of dealing. In fact it's not dealing; it's a cop out. Talking through it is the only way to ensure there's no misunderstanding and to reduce the chance of it happening again. A relationship is like a running machine, it requires maintenance.