Here’s the workflow I was thinking about:
Say, for example, you have an airplane fuselage and you want to put some rivets along the various section seams. It would be great to be able to select one of the edges as a path, then invoke your tool, select a rivet model and have your tool create instances of that along the edge. Options would include total number divided evenly, number per point span, or something like that.
The second with was to be able to do the same thing on a surface. In that case, you’d select the surface, invoke your tool, choose the model and then choose setting with regard to number of instances and placement randomization. Say, for example, 0% randomization places the instances in a perfect array, whereas 100% places them totally randomly. (Of course no two instances would ever be placed at the same point.) 
Does that make more sense?
And would be a lot leaner than generating a ton of geometry or N instances instead of a single point cloud of size N.