I can see where it would be a great training aid. It would allow a student a safe, "ammo free" training aid for dryfire practice with both point and sight shooting. Also, that was a great point on the intimidation factor theory. The muzzle would look HUGE from their point of view wouldn't it? That would be a bit more intimidating for them.
On the IR sight comments: there was a special on not too long ago. Discovery or TLC was airing it. IIRC it was on the US Park Police. They showed a night SWAT op outdoors using night vision goggles (NVG's) and weapon mounted IR sights. First footage I have seen of this technology. The "firefly" units worn by the team helped identify each member while keeping light disipline. It was interesting. Keep an I out for that special.