Yes, but if a player comes close enough to attack, then runs away, the lurker will unburrow to follow it, this method would give it to a neutral player as soon as the player got out of range, so it never unburrows.

Vision is circular, locations are rectangular. If he runs outside attack range in any diagonal direction the lurk would probably still unburrow because the give to neutral would be too slow.
It would definitely not work if he diagonally moves just outside attack range (e.g. tank).