Yes, split tunneling is great; I love it. The key to setting it up properly is to get the access lists right. Make a mistake there and you'll chase your tail for ages (speaking from experience...)
As to why companies don't use it, basically if you've got split tunneling then you can be connected to your workplace's secure network and to the internet at the same time. This increases the risk of something getting from the internet onto your company's network via your PC, effectively bypassing all the firewalls, router acls, proxies and goodness knows what else they have protected their main internet connection with. For that reason a lot of organisations say you can use either the VPN or the internet but you can't have both at the same time.
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