That's fine for thermoplastics and it's fine so long as you don't care about eg what colour it is. Not all plastics respond to heat by melting (there are quite a wide variety of plastics that undergo polymerisation with heat, so heating them makes them more solid, not less), but the big problem of this kind of direct-use recycling is that it only works if you can first sort the plastic into all the different types and colours. There are only a middle-sized handful of basic plastic types, but there are a dizzying array of small variations for different purposes. If all you care about the material properties is that they can go through a 3D printer and make something that's solid enough when you overengineer it to a degree then that's fine; if you care about cutting every last penny from the cost of producing things and about making things that are "just right" then it's not going to cut it.
You also need to be able to effectively remove all the labels and any residue of foodstuffs etc. That's easy enough to do on a small scale for your household recycling but it's labour intensive; it's quite difficult to do very cheaply and at a large scale. The advantage of the "advanced recycling" process is that it involves a refining step that removes all the contaminants.