The NAT method is also called masquerading and that puts it in a nutshell. A Windows firewall by default only trusts devices in its own network and with this method it seems that the access comes from its own network segment.
To do this is an easy workaround as long as you have no need to determine the source device on the destination device.
So, in my opinion, its sufficient for home use, but in a business environment I would prefer the routing method and configure the firewalls to allowing access as needed.