They're for removing heavy rust from thick steel plate; they're widely used in ship yards for that very purpose. You can also use them for removing slag off of stick welds and flux cored wire welds, but they'll leave tiny dimples on an otherwise pretty weld; that's why some welders will opt for a chisel scaler instead.
I use them for cleaning brake caliper carriers, does the job lovely
They can also be used to stress relieve welds between passes.
9. Remove shrinkage forces after welding
Peening is one way to counteract the shrinkage forces of a weld bead as it cools. Essentially, peening the bead stretches it and makes it thinner, thus relieving (by plastic deformation) the stresses induced by contraction as the metal cools. But this method must be used with care. For example, a root bead should never be peened, because of the danger of either concealing a crack or causing one. Generally, peening is not permitted on the final pass, because of the possibility of covering a crack and interfering with inspection, and because of the undesirable work-hardening effect. Thus, the utility of the technique is limited, even though there have been instances where between-pass peening proved to be the only solution for a distortion or cracking problem. Before peening is used on a job, engineering approval should be obtained.
Another method for removing shrinkage forces is by thermal stress relieving - controlled heating of the weldment to an elevated temperature, followed by controlled cooling. Sometimes two identical weldments are clamped back to back, welded, and then stress-relieved while being held in this straight condition. The residual stresses that would tend to distort the weldments are thus minimized.
Have you never heard of peening a weld to stress relieve it?
http://www.lincolnelectric.com/knowledge/articles/content/distortion.asp
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the needle scaler that I have leaves the same affect as several hits with the ball side of the ball peen hammer.

if you need peen your welds to prevent cracking you should turn you helmet in now, im not trying to be an e-thug but old wives tails about welding really piss me off
the only true way to stress releve a weld is in a vacume chamber that is SLOWLY heated and cooled for aproxamatly 4-6 hours, its also unnecessary for most situations
Ever done any welding on Hardened tool steel. repairing die sections and trying to keep things as flat as possible some times it is necessary because if you have to much warpage you will destroy the part trying to flatten it out.
Or how about large Cast Iron Repairs, peening may be necessary to keep the part from cracking as it cools.
kind of funny about a major welder manufacture would post old wives tails on their website.
Merk, were stationed on this thing?