Yes, you could spread radioactivity over an area. A relatively small area. Done just right, about the same size area as an accident in a chemical plant would endanger -- i.e., enough to displace a few hundred homes and a dozen or so businesses, but hardly any more damage than the sort we already take in stride when a train carrying tank cars of dangerous chemicals derails.
And like a chemical spill, the moment an attack like this occurs, the evacuations would start and the actual amount of danger to people would be low. It would just make for an environmental mess, but again, over a relatively small area.
Some uninformed alarmists have tried to paint pictures of millions of people with radiation poisoning and entire regions made uninhabitable, but that's simply ridiculous.
kind of like Love Canal?
Bottom line is these guys have proven that they are completely competent when it comes to the "force multiplier" effect. They tend to use one small attack to create a larger attack, which leads then again to an even larger final outcome. It's their variation-in a way- on the daisy cutter. A smaller bang leads to much larger results. Their attacks 'directly" seem to be primers for the real goal. One inch bladed knives led to what, 7 major US important buildings down, huge loss of life, and we are still under the ramifications of what happened. All from one inch long knives. If they can do that, starting out with a bigger weapon might be possible for them to have a huge outcome.
I'm not saying that it would be either totally devastating, but I guess I dispute the notion that it could "only" be minimal.