It is ugly in that it is possible to switch windows before the keystroke takes effect so that it doesn't go to the intended window, but you almost have to try to do it on purpose. Some of its ugliness is mitigated by the fact that, as a toolbar button, the keystroke implicitly would go to the front window (Finder toolbar buttons don't support Cocoa Cmd-click through behaviour).

Despite these drawbacks, the reason why I prefer the keystroke way is the behaviour in "Icon" and "List" view. Both methods will "go to parent", but unlike the container of window approach, a keystroke also leaves the previous folder selected so you can see where you came from.

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