I guess it's a question of degree. So if you feel like she's actually really hurting herself by doing this, then yes you need to find a different way. Like mums with those babies who vomit as soon as they get upset. My own daughter has seizures when she cries really hard (although we did go ahead with sleep training and she actually never had one).
If you feel like it's more of a thing where yes she might pull out of a few strands of hair but she's not actually going to injure herself (this is my instinct based on what you've said but of course I don't know her), then personally I would carry on, in the knowledge that actually once sleep training is complete there will be a lot LESS crying.
But to answer your question, if you feel like she might respond to PUPD, try it by all means. What we tend to find is that, with older babies, they feel secure and happy when they are picked up and then immediately furious when they are put down again, so the PU actually ends up counterproductive. If yourlittle one can stay calm when she's put down, it could work beautifully for her.