Yes, the blade-rotor configuration you're describing—where the axis of rotation of the engine is perpendicular to the longitudinal axis of the aircraft—can indeed be used to propel aircraft. This configuration is similar to ducted fans or propfans and has been explored in both traditional and experimental aircraft designs.

Benefits:

Best Fit for Aircraft Types or Missions:

Challenges to Consider:

• Structural Complexity:Mounting such a system perpendicular to the aircraft axis requires reinforced bearings and gear mechanisms for torque transfer.
• Weight Constraints:The need for heavy-duty structures to handle rotational forces may increase overall weight, impacting efficiency.
• Aerodynamic Losses:Additional ducting or structural supports might induce drag if not carefully designed.
• Noise Control:Although quieter than traditional propellers, optimizing noise levels for cabin comfort and regulations might require acoustic tuning.

This approach could significantly advance hybrid-electric and distributed propulsion systems, particularly for next-generation sustainable aviation and UAV technologies.

I suppose from your picture that the propeller axis is also perpendicular to the longitudinal airplane axis.

If so, this type of propeller, like vertical axis wind turbines, or boat paddle wheels, and other similar devices, that use blade drag forces instead of blade lift forces to provide thrust, may be useful only for very small Reynolds number devices (very small sizes, very low speeds, or highly viscous flows) when drag forces are larger and more easily obtainable than lift forces, for instance, for insect wings, and may be for small drones.