basically it was used like a teleport command. If the person that was low on health was somewhere save, like in a bank, ammu, checkpoint or ahead in a car, they could use the command to practically teleport away from the attackers, as the respawn during reclassing almost works the same way as respawning in general, just with a less important option to change your skin, and without adding a death to your stats.
This command was for statswhores that couldn't bear being killed once too much for their 'perfect' polished stats.
Now i know what one could say - hey, if they don't wan't to be killed let them - not everyone want's to die. Well, this is mainly a death-match game mode with some additions, and if people don't want to die they'd go and play on a trucking server. There have been rules and conventions here ever since: at first don't abuse commands for stats padding, secondly no teleports - teleports suck shit, third: If you can't accept being killed you shouldn't kill either, so shut up and die.
Lastly, i experienced that most of the players that abused this command in the described way were statswhoring regulars. Normal newbies would /q or hide in a bank/ammu/checkpoint or run/drive/fly to avoid death.