That's the way I also implemented it, closing and reopening. Suppose automated checking on changes of the project file would happen, reloading can be just closing and reopening.
If you edit in the editor of cb, it should work rather well. If you 'GUI' changed something to the project and in the mean time you also changed the xml file for example in another editor (gedit, notepad, ..) then you are in for trouble. Because one save can overrule the other save, but this problem is also present for regular source files.
The reason I made this plug-in is, when your project (for example a library) has many targets (for example debug/release builds with different compilers for maybe different platforms); then I might be way easier to make an adjustment (say needed for 'nearly' all targets) if you could do that in the text xml file, instead of wading through all those gui panels.
Gui's are nice and user friendly but sometimes one needs more 'core?/hacking?' power.
Example :the project generated by the plug-in generator plug-in contain incorrect paths for compiler and linker (see another post by me). Each time I generated the plug-in starters I could adjust everything through the gui's. But I could just copy the correct stuff from a correct cbp xml file and copy it in the new wrongly generated cbp. Ok, fair is fair, if that bug is fixed, this example is no longer, but other occasions might benefit from this approach.
Another occasion where at minimum the reload command can be of use, is when you use versioning control system, and you retrieve from the system an older or newer version and CB had the project still open. So then my plgu-in comes to the rescue (you could close CB before you update the stuff from the version control system), it is automated then, or semi-automated since the user still issues to reload command. But it might be nice if CB detects the change and offers you the reload, the user then should decide what to do, if he had already made an unsaved change to the project and now he wants yet another different version of that project.
Hey, these are my pros, no doubt there are good arguments for the cons.