Paraphrasing is a component of a parenting philosophy I follow, but they call it active listening. I live for the day someone I'm talking to will paraphrase me. If that were to ever happen, I'd probably just stop talking and hug them. It's nice to be heard.
Yea, its definitely a lesson I've taken outside of negotiations. I try to paraphrase coworkers and my wife to better understand their goals and needs. It helps immensely to align my mental image with whatever they are trying to get across.