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James_Miller comments on Rationality Quotes: March 2011 - Less Wrong
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Dilbert creator Scott Adams discussing Charlie Sheen.
Some people practice "Radical Honesty" which seems much like that. Seems to me you'd need to start young, before you've got too many skeletons in the closet, before you've got too much to lose, and whilst you have time to recover. Probably also need an honesty-proof career.
As for sounding crazy, I'm already crazy and readily admit it.
Well, even if you don't have those things (a skeleton-less life, an honesty-proof career, etc.) you might still find that the you value the costs of honesty, however substantial they might be, less than the costs of continued deception.
Of course, I agree with you that the costs are lower when you have less invested in deception.