I've tested. works if you know what you are doing. I have some remarks.
If for whatever reason I wanted to strippify skinned geometry, it's a bit unreliable on anything skinned so far. I buggered the arms on my snowtrooper. and it wasn't anything to do with the the visible in editor setting in the dismember partition, not sure what happened, I didn't thoroughly poke at it to see what had happened. I recommend being careful on skinned meshes, or leave them alone. though these were optimized the most by Pyffi of my files< probably beacuse I don't strip, and haven't been using partition strips
when exporting skinned meshes, I don't strippify the geometry myself. Beth doesn't, nor any games using the nif format do afaik(the same/similar skinned export script, ala civ4) I presume there is a reason. So I keep as shapes as well. Should I be using the make partition strips in my skin instances though?
I take care to optimized my geometry as much as possible. Pyffi doesn't remove any extra verts. < you can minimize the extra verts in the UV caused by the splitting of smoothing groups by hand splitting the geometry and welding the split verts in the UV. 95% of my models are smoothed 180 degree anyway- all hard edges are taken care of in baked normal maps. some times Pyfi doesn't actually do a single thing to them. I presume I am just doing something right on my end
I do get 1 - 2.5% file size reduction. I presume its the strippifying. or I missed some redundant verts in UV.
Strippifying meshes with alpha can introduce some bad alpha blending.
http://i25.photobucket.com/albums/c85/lego-botz/other/alphastrippifiederror.jpg
Good news is that it doesn't seem to damage my face normals. The normal maps appear to render correctly and nothing horrible happens. face normals spell in nifskope destroys it completely, leaving on other option I can see except reexport.
it is useful in some cases, and can be used without fear. what you get out of it, really depends on the what you put into it.