The only use I see in Tiltbreaker is that a backer can be sure that a horse (who is forced to install it) won't take insane shots if in slight makeup at the end of the stake (to take some part of the profit if the shot succeeds; if it fails, all the loss is absorbed by the backer, so it would be a freeroll for the horse).
If a player risks his own money, he's often sound enough to quit in time, or will learn it sooner or later by trial and error. (Judging by the session I've just finished, I'm not sound enough yet
; but no soft is perfect enough to always determine my psycho state correctly.)