Centre hatching can make things better or it can make things worse depending on the lane dimensions before and after the treatment. (the example in the OP looks like the latter).
To explain this we first need to consider what makes a good traffic lane width from a cycling perspective -
Ideally a traffic lane should be wide enough for motor traffic to overtake a cyclists with a comfortable margin without changing lanes. For a fast road with HGV traffic you would want at least 5m so if the road is wide enough then the best arrangement for cyclists is a simple centre line. As lanes become a bit narrower there is still room to overtake safely in the face of oncoming traffic by straddling the white line, but eventually you reach a point (about 4.25-4.5m) where there is insufficient room to overtake safely without changing lanes. Unfortunately some drivers will still attempt to squeeze past. So, if there isn't sufficient room for wide lanes then narrow lanes (and I mean very
narrow < 2.8m) are preferable as it is obvious to even the dumbest driver that they need to overtake properly.
lanes (>4.5m and preferably >5m) are best.Narrow
lanes (<3m and preferably <2.8m) Critical
width lanes (3m-4.25m) are most intimidating and should be avoided.
Unfortunately standard British traffic lanes at 3.25m-3.65m fall in the middle of that range - almost as if they were deliberately optimised to make things unpleasant for cycling.
Now we come to how hatching can help.
If you start with a 7.3m wide road with with 3.65m wide lanes (a fairly common and unpleasant arrangement) - then a 1.5m wide hatched centre line would reduce the lanes to 2.9m. This is narrow enough that drivers realise they cannot overtake within the lane - and by using the hatched area they have effectively got a 4.4m lane to overtake even in the face of oncoming traffic.
This example shows a road that has been improved: https://maps.google.co.uk/maps?q=birchw ... 5,,0,13.62
though it would be better still if the hatching was wider and the lanes narrower. It is also important that the hatching is fairly light - rather than painted red as in the example in the OP.
To see how hatching can make things worse.
If you start off with a 10m wide road with 5m lanes where everyone has plenty of space then 3m wide hatching can push you into the critical zone with 3.5m lanes. Drivers are reluctant to change lanes if they think there is enough room to squeeze past so you end up with close passes.
This is my route to work:https://maps.google.co.uk/maps?q=birchw ... 8,,0,15.92
It used to be fine before they put in the hatching (if you zoom out you can see a normal centre line). Now I have to be very careful to ensure a good road position far enough out to force drivers to change lanes, but not so far that even when they use the hatching they are still too close.