It's a solution to situations like https://en.wikipedia.org/wiki/Ross_Ulbricht#Silk_Road,_arres... , where the laptop is taken by people who (a) can legally seize it, (b) can legally search it, but (c) probably can't legally compel you to produce passwords.
The author of the article clearly had that or something very similar in mind when he wrote this piece. It reads exactly like that story (I had the same thought as you).
It's a very good solution for people who don't know you have something like this. Clearly if the FBI (or whatever) knew of the USB kill device, they'd take a slightly different snatch and grab approach. However if the adversary doesn't think or doesn't know you have something like this, then it can be used to great effect.
If they don’t have due process laws they can throw you in jail until you produce the decryption password, and if they turn on the computer and it’s wiped they’ll throw away the key.
If there is no due process, all bets are off and your best defense is to be uninteresting to authorities.
It's a solution to situations like https://en.wikipedia.org/wiki/Ross_Ulbricht#Silk_Road,_arres... , where the laptop is taken by people who (a) can legally seize it, (b) can legally search it, but (c) probably can't legally compel you to produce passwords.
(Not endorsing this usage!)