Much better for the hearts-and-minds concept to disperse gatherings (incipient riots) without bloodshed. That's what this equipment is supposed to do.
If you could stop the Iraqi equivalent of a Watts riot without firing a shot, it's worth a try - so long as these don't supplant lethal weapons in terms of what's issued to troops.
It will probably also be good for dealing with terrorists who hide behind human shields.
An old fashioned water cannon fed from a septic tank would be a cheaper and much more robust solution.