I've never done it but considered throwing everything. I get what you mean about holidays and less fighting and less tidying up. We are also very busy when on holidays and the kids are exhausted maybe to exhausted to fight??
We weren't overly busy but they were tired at the end of each day. But really, they both are at daycare and neither have day sleeps so they are constantly doing stuff during the day so in theory should be tired. We get home and do h'wk, dinner, bath, quiet time/book time and bed. Same as every night.
If they have less stuff it means less materialistic things they have to fight over.
Both dh and I work in com services so our kids understand that others do t have things they do. My theory is pack up everything they have and they can live like the kids dh and I work with. Make them realise what they do have.