It is not perfect. But then, nothing seldom is. What it does protect from, given that most attackers will not have your ssh-faker password, is from the attack

It is not perfect. But then, nothing seldom is. What it does protect from, given that most attackers will not have your ssh-faker password, is from the attackers obtaining any access to your sshd to try anything, be it a password scan or whatever. It is another layer in front that deflects all of the script kiddies, and many of the more intelligent attackers. Why telnet? Because ssh-faker is not an sshd, and so you can't submit your password to it using ssh. Perfect, no, another layer, yes. Kind of like having a lock on both your front gate and front door. Those who can't get through the gate lock can not ever attack the door lock. Those who can get through the gate lock still have to then attack the separate door lock.