I suspect the nippers proved somewhat fragile in use. The spring loaded telescoping tube arrangement needs to be clean to work well, and could be disabled by a slight dent, which would prove difficult or impossible to repair.
They can't exert the sort of pain compliance pressure on the wrist as a unit like the Argus Iron Claw, particularly since only thumb pressure is available. But it provides a handle attached to the prisoner's wrist. Twisting the unit with your wrist should provide a fair amount of pain compliance.
It looks like one of those nifty items, like the Herstal magnetics, that had a design deficiency and never made it into long term production. Bad for the manufacturer, great for collectors.