Functionality-wise, it seems very similar to just "git cloning" another copy of the repo in a different directory (you can even use the "main" local repo as its source, and "pull" from that), which at least to me seems more intuitive to reason about and doesn't require me to learn any new commands or worry about any limitations like the issues with submodules or not being able to have the same branch checked out twice (clones don't mind).
It's a nice idea, and I'm going to try to remember them as an option for future scenarios where they might be useful, but I think the reason they never caught on generally is just that they're not bringing anything to the table that can't already be easily accomplished by other means.