It is. I remember reading it in a guide (pretty sure the one this screen shot is from as it looks very familiar). I was able to do it a couple times, but it required enough precision / luck that it wasn't worth doing IMO.

Yeah a couple of ROMHacks actually require you to do this (mostly puzzles)

Yep, I remember doing this trick in SMW on my physical SNES console back in the day.

You can also throw an item up, jump and grab onto a climbing surface, hold the grab button down, and line yourself up under the falling item to carry it.