That's right, just for a handicap and danger enhancer / confuser. The Skyrim people hated it all through my pleas that it increased the 'you are there' feeling. I tried to argue the sense of getting lost and using it along with compass turned off so that we don't miss what's on the screen while we are looking at the pointer. Unfortunately, in FO3 there is a side effect on the perspective of the arms holding the gun. You'll see it when you try it and move to another cell.
"It's not realistic," they said. Guess they don't like the feeling of being vulnerable while at the same time have the opportunity to look their enemy in the face. Also, it allows a better look at the briast area. You know, just so that you know that your body replacer is working. And... and to look for seams!