It is a common practice globally although primarily in cities where there is more than one terminal on a line.
London is a good example where the Bakerloo will terminate at Stonebridge Park, Queens Park or Harrow and Wealdstone. The Central Line will either terminate at Ealing-Broadway or West Ruislip depending on the trains destination.
Hell, the Northern Line has 5 destinations depending on the time of day, branch and direction of travel.
Just because you the destination is on the outside does not mean you will see it hence why the have it inside. Even the trains inside will say things like.. "This is a Bakerloo service to Stonebridge Park, the next station is Maida Vale.. mind the gap before exiting the train".