I think it's a "good" idea in the sense that there is little or no penalty for trying. Just don't go to a PhD program from which you intend to drop out regardless of whether you will be able transfer out from simply because you can't see yourself completing a PhD degree there. However, I am generally skeptical about such possibility. Spending one semester in a graduate program will hardly improve your chances for moving up, if at all. In fact, fall grades might not even be available on time for application deadlines. I have heard of such stories before. Ideally, you should spend the whole year in your program, and then re-apply during the fall semester of the second year. That is, if you get outstanding grades and letters of recommendation. Just make sure you have a backup plan (e.g. you can see yourself actually going on to finish the degree working with faculty at current program if you do stay). There is a question though whether professors will be actually willing to give you a good
LoR and whether you can actually be the top student of your class (otherwise, why would better program want you?). Given the egos of some professors, specially some of the well known faculty in your program, it's almost certain some people will be pissed off. My personal take is that if I was a professor in a graduate program I would be pissed off if I was approached with such a request from a student who obviously joined the program to transfer up, thus wasting a funding spot that could be taken by someone who is taking the PhD program at my institution more seriously. PhD programs exist to grant PhD degrees, not Masters degrees right? They get no benefits from admitting students who eventually leave without finishing the PhD degree. There is LSE and other European and Canadian Masters programs that are specially meant for giving a better prep for PhD application.