Can the peer-review process be "emulated" in class?
As Nate Eldredge says in the comments, peer feedback is an accepted teaching practice, and "simulating" peer review is one way to implement it.

This method is very effective in facilitating deep learning, developing critical thinking skills, encouraging clear writing, and promoting teamwork. It is less effective when the goal is to give some broad overview of a topic.

Some of the difficulties lie in assigning grades (for the outcome? for the review? what if they are not written?) and in overseeing the process. 

Moreover, the process may at first seem efficient as it takes some load off the teacher, but this depends on the degree of oversight and steering. It is also quite time-consuming for the students.