Sure, sometimes. It should be used incredibly rarely. However, not in this way. The GM has plenty of levers to pull without messing with the one thing you have players for. If the GM is just going to tell a story then they should write a book. If they want to do cooperative storytelling then they need to cooperate.
If the rolls don't matter then the story gets incredibly boring, as it just goes whatever direction the GM wants. Without failure, success is boring. Without success, failure sucks. When they're perfectly balanced by the GM, it's predictable and not surprising or fun.