I was really excited about that back then as well, but I'm afraid that the built in SQRT instruction that basically all CPUs have nowadays is faster and essentially exact.
BTW, it's Newton Iteration, not interpolation.
For games, you'll be surprised how abused square rooting is. For example, suppose you want a character to grab an object when it's x distance away from it. Well, instead of comparing distances, compare square distance. ie, compare x*x to the square of distance.