It's good for uptime, but not good for correctness. The main problem is that it is hard to differentiate expected from unexpected crashes. Something like a missing pattern match can lead to a crash and it is very hard to know if the programmer "intended" for a crash to occur in that case or if the missing pattern is a bug.
You can have processes that reboot once every few minutes running for years because people didn't realize they were bugged.
Each node does not handle errors at all, but PANICs on a fault. It is up to the supervisor (with global knowledge and state) to handle the fault appropriately.