I agree it would not be an ideal solution for every engagement:
Like you said, it doesn't pack a huge punch, but it does slow the enemy down if you get lucky making it that much easier for you to stalk him at a leisurely pace until visual conditions have improved sufficiently for you to be able to take him out with impunity using more conventional means.
On the subject of the "web of death" being stupid, yes it is tactically stupid beyond belief, but funny in a one-armed-bandit kinda way if you feel like gambling a bit.
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