I never found this circuit to be all that useful, just another bell/whistle they added for who knows what reason.
A period curio really. They probably were thinking of bassists going into the studio and either doing the Morricone/Spy Theme baritone jangly thing, or needing an undefined rumble down at the bottom of a dense (and probably mono) mix of richly orchestrated pop/light music. And the player would probably be using a felt pick or something like that!
This is the era of sonic presets in instruments. In the '60s they really got the most out of passive guitar circuits, and by the '70s a lot of that technology simply went in the bin. The worst offender was when flush guitarists went to Gibson and asked for a stereo ES-355, which had two Varitone circuits ganged to a single rotary switch. The Varitone would always be in the circuit (though this seems to vary with era) and was a crude passive notch filter that used a choke. The stereo ES-355s had two of these circuits in there, one volume and tone per pickup, and ran to a TRS jack, so that you could feed two amps with one signal per pickup. Even the Rickenbacker 4001 basses back then had a capacitor permanently wired in series with the bridge pickup simply to remove bass frequencies. Because who wants bass frequencies from a bass! That is what the neck pickup is for, right?
Look at this beast:
What do those six switches do!?!?! I bet the back of the pickguard looks like an old telephone exchange. Even Fender got dragged into this madness with the Jaguar and Jazzmaster schemes. The 'poker chip' on a Les Paul doesn't say "neck pickup" and "bridge pickup" or anything that lucid either. Manufacturers sort of hid the actual function of switches and knobs behind a vague marketing lingo, and it seems that players didn't want anything as simple as 'bridge pickup' until maybe the late '60s?
Switches also probably helped sell instruments, especially budget ones like the guitar above, simply because it made them look more richly appointed. Does a Stratocaster need two tone controls? Yes, if the competition has one! Doubly so if the 'budget' Telecaster needed only one. And again Leo Fender imagined that guitarists would only want a twangy 'electric spanish' tone from the bridge pickup on a Stratocaster, so it doesn't have a tone control. And on the originals you couldn't blend the pickups either; you simply had one of each of the three pickups to toggle through. Neck pickup for Jazz, middle pickup for ballads, bridge pickup for Hawaiian pastiches... it probably said something like that in the manual!