It is supposed to be able to attack when wounded...not always advisable, but look at the Japanese troops in WW2 (or other examples of gung-ho fanatics). It would be a LOT more powerful if combined with heal +50, or similar, but Sid is not Santa Claus.
I don't usually play Japan, but it does prove handy for massed assault, particularly on coastal tiles. Japan's big perk, IMO is the Transistor (or electronics) Factory, which is great, but by the time it is available, I have usually won or lost. That's the downside of Domination...some Civ's are just not comfortable with eradicating all the other tribes. Ce'est le guerre.