Works in exactly the same method. The only drawback to the degree key is it's all or nothing. You either run the key (and it advances your timing 4 degrees) or you run a stock key and it doesn't advance your timing at all. The plate can be "grooved" to allow infinite adjustment.
Otherwise, the degree key works well. The flywheel key is only there for alignment purposes anyway. The interference fit between the flywheel and crankshaft tapers is what holds the flywheel in time with the crankshaft anyway...