If I got that right, just imagine that in a tournament/betting room with more than 20 users. The whole visible chat area will consist of only these "typing signs".
While this isn't a necessary feature at all, I could see it being used for whispers/private chats. But yeah, don't think it should be used in public chats to avoid the scenario sir pointed out.
"Fear not the Tori who has practiced 10,000 openers once, but fear the Tori who has practiced one opener 10,000 times."