If there are dead hair cells, their approach may work. It won't work on hearing loss due to other types of damage.
Genetic hearing loss may involve only hair cells, but regrowing genetically defective hair cells isn't likely to be much of a solution if the new hair cells are also genetically defective.
Additionally, people are using "ototoxic" in a very non-specific way. If a drug is ototoxic and kills hair cells, then this approach may well work. If it is ototoxic and damages other types of cells in the cochlea, then this approach is very unlikely to work. (And the number of truly ototoxic drugs - drugs that specifically result in hearing loss - is much more limited than people on this forum seem to realize. The leading examples generating the most work are Aminoglycoside antibiotics and cisplatin, a chemotherapy drug.)