No, the data suggests that it does, but it was hardcoded to heal only the person wearing it. That's why I made the two patches, because I wasn't sure if I should limit it to the wearer or go with what the data suggests and heal the whole party. It's still pretty useless, but at least any item can use the effect now. 
I agree. The reason I was asking was because I never use the thing anyway!

This would help any potential hackers looking to use this mod as a baseline (once it's finished), but I think that I'm gonna lump this with the Summon Aiming patch and say it's out of scope of what this project does.

It's there just to free space in C2 for patch authors to snatch it up for more bug fixes (or other code). The patch repoints some JSLs to look at the C0 decompression routine instead, because the two are the exact same, but C0's lacks 2 instructions which I added. It should not cause any conflicts, because I'm not touching any existing free space. It will depend on if any patches move or alter any of those JSLs, and I believe none do.
Then this will also help any potential hackers using this project as a base for their hacks. Although I think I will use this one because of the optimization fringe benefit.
Also - does this mean we might see a usable version of the "Ignore Defense" patch soon?