It's the model that is used for Kyle's hands when in first person mode when using the light saber in SP.
Personally I find it a cheat, just like strafe jumping/bunny hopping. Just because it is in the games files, or is a bad prt of the games physics doesn't mean you have to use it. I thought SW was more about chivalry and honour, obviously the Sith amongst you out there don't believe in that.
If you want to just kill, play Q3, if you want to at least try and play in the spirit of the game, then by all means play JO with the rest of us.