^^^^
An advantage to the closed loop system is that, as you rack by gravity, when beer flows out of the gas post when the keg is full, it will only rise in the gas return tube until the levels equalize. You don't have to keep a wary eye out for the moment beer comes through. At one point I used this method, but currently use CO2 pressure to move the beer so I don't have to lift the fermenter above the keg; but it is a completely closed system and a very elegant solution.
To BrewBama's point about opening the fermenter to dry hop: there have been some discussions about ways around this on the forum, and I do recall hopfenundmalz (Jeff Rankert) has posted about using a Blichman Hop Rocket in the manner of Sierra Nevada's Torpedo, "rocking" the beer back and forth between two kegs. A search of the forum should turn up any details he offered.
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Yes, I have done it.
Use whole hops, up to 4 oz. Purge the Hoprocket and lines with CO2. Rack from keg to purged keg through the purged Hoprocket.Transfers take some time, and you may have to go back and forth several passes through the hops. The hop aroma is vibrant. I don't do it all of the time, but I have been thinking about doing it again