Is "the observer on earth" view common among Creationists?

To elaborate on the Young Earth Creation point of view:

Light was created on Day 1, along with time (in the beginning), space (the heavens), matter (the Earth). The relationship of these 4 things is described in Einstein's equation E=mc2. E is energy (light), m=mass (matter), and C is the speed of light. Speed = distance/time, and distance is simply a measure of space, and so you have energy, matter, space, and time.

This first light had magnitude (enough energy to feed the plants before Day 4) and direction: it shined on a 3d, rotating Earth from a specific direction so that on Day 1 there was a separation of light and dark, and there was rotation indicated by evening and morning. There was no Sun yet, just a stream of light energy made by God shining on a rotating Earth.

Day 4 sees the Creation of the Sun, Moon, and Stars. The Sun takes over the generation of light to the Earth. The heavens are then stretched out (Isaiah 42:5), causing time dilation in the space beyond the Solar System: billions of years' worth of starlight produced in 24 hours of Earth time. This enables the stars in the heavens to function as a clock (Genesis 1:14) that can run forever, sending streams of light that are visible from the Earth right from the start, from Day 4 onward. The original light of Day 1 is what we would refer to now as Cosmic Background Radiation, which is about 3 degrees Kelvin. The Young Earth Creationist would say that the CBR is smooth in every direction because on Day 1, there were no stars and galaxies yet to make it lumpy.

Reference:

The book Universe by Design: An Explanation of Cosmology and Creation by Dr. Danny Faulkner; published by Master Books, PO Box 726, Green Forest, Arizona 72638

Describes the CBR, expansion of space, and time dilation in the context of a young Earth interpretation of Genesis 1.

It's hard to say that anything isn't common, unless you've interviewed everyone. I'm pretty sure it's not the mainline creationist view, though, if there even is such a thing. The biblical creation story implies that there was no one able to act as observers until day 6. Those who tend to buy in to the first part of the story are also likely to buy into the second part.

Instead, I think many creationists would point you to Exodus 33. In this passage, we learn that God spoke directly with Moses, as you might talk with a friend. Creationists also tend to believe that the Genesis account was first written down by Moses, even though Moses was not an eyewitness. Some may be believe that Moses was writing down oral traditions that already existed. In that case, they might believe that this tradition began with an observer such as you describe. But I think the more common belief among creationists is that the Exodus 33 passage describes how God gave creation knowledge to Moses.

There are likely a number of other common theories as well.

As a keen Young Earth Creationist, I can say that mainstream YEC's (e.g. Creation.com) consider the whole Bible when interpreting Genesis 1-3. As mentioned above, that would include Exodus 33. The Lord told Moses what happened at Creation and that is what Moses wrote down. The language of Genesis 1-3 is historical narrative, so God simply told Moses what happened as God made each day. So for YEC's the Sun was created on Day 4.

Some creationists do posit that Genesis 1 is written from the perspective of an observer on earth. Not because of clouds covering the sun, moon, and stars, which they still believe to have been created on the fourth day.

Instead some creationist cosmologies posit that during the creation week the earth experienced a different rate of time than the rest of the universe, perhaps because of gravitational time-dilation. These models allow for billions of years to take place in the wider universe while only a week occurs on earth. Therefore Genesis 1 can accurately describe the creation as taking place in six days, as long as it is understood to be measuring time from the perspective of the earth.