Is there actually a practical application to this potion?
Or is it just classic TES "potions can debuff as well as buff"?
Mostly a consequence of the alchemy mechanism. The ingredients determine the effect, Potion or poison determines how the result can be used. Some combinations of those won't make sense.
But TES has had things like the "Dagger of Friendship", in Shivering Isles, that heals the victim more than it damages. Sometimes it really is "just because we can".