Yep, happens all the time. Benefits: better clearance, better isolation between phases, and reusing existing infrastructure (less cost).
Can't say I'm not impressed by the 230kV line with the 35kV pole next to the structure, though!
Typically, we'll operate a 35kV line that has been retired (and is nearing the end of its life) at 12kV before it is rebuilt or moved UG at 12kV. At one time we had a 115kV line energized at 12kV, but that was an odd situation.