I would use this example as to how this will be useful:
I'm flying an Il2, but with reduced GV icons it will be more difficult to see where a GV is to set up an attack.
My friendly Storch pilot flys by, pops a smoke grenade near the enemy GV so I have a point of reference to where the enemy is.
I actually believe this plane will be used alot, we already use fighters to mark the enemy with mg fire, smoke since it lingers, will make it much easier to see since I wouldnt have to be staring at the marking plane the moment it fires.
I wonder how visible it would be from a ground level though :/