I have seen these mentioned before, seen them listed for sale.
Less room to toss a hook around with a head shake ought to mean less fish come off. It would be analogous to head shakes and loose lines, that the less "pinned" a fish is, the more likely it can shake off. If the fish is hooked inside the "trap" or "box," it just won't be able to move the hook much distance for the force it needs to shake loose.
*** Didn't see it the first time on TW but Trapper Tackle also has the same hook in a drop shot configuration down to #4s.
I think the drop shot version of the hook would be an interesting hook for a wacky worm presentation.