It's a test on enemy's health therefore its niche is to get rid of 3~4 HP enemies in one action where otherwise it makes your action / ammo calculation worse to clear the board, or you really need to not cause friendly fire or skip Retaliate / Aloof by the Parley. You will often not want to whittle down enemy's HP from its max value to make the test easier, because then you can finish it without costing 3 resources on this card. On 3 HP enemy it competes with Backstab which uses and can hit friends.

But when I was trying to use this, it is more often that I can clear the board with the combat stats required to use this card in the first place, and rather save 3 resources than ammo or actions. Even Michael McGlen wants some commits to intimidate enemy with that HP to not waste 3 resources, while his gun provides some built-in boosts. It ended up too much of an investment.

The Elite clause is only for securing the kill with low difficulty test on the last hit against scenario boss because they often have high HP.

In 3~4 players encounter deck often loops so it going to deck instead of discard pile may not matter, or sometimes better or worse. Maybe you do want to draw this enemy again soon instead of other treacheries, just that the next time it comes alone and you can deal with it better.