Comment by cperciva
This isn't used in practice because if you care about efficiency you're not calculating M^d mod N; instead you compute exponents mod p and mod q and use the CRT to combine (as mentioned in the author's link to "Garner's algorithm").
BTW the Carmichael function and Carmichael numbers have little in common aside from their author and the fact they concern whether x^b = 1 mod N for x relatively prime to N.
Thanks, I thought about this a bit more. Would the security argument for using the Carmichael function essentially be the same as RSA with totient function, as the adversary can always find d that satisfies either function (Carmichael or Euler totient) regardless of which function is used?