The fact that it's named lends credence to the idea that its value is primarily psychological. It reminds me strongly of one named "Sid the Babycrusher".
If you really want an effective nail-studded weapon, you use thicker nails driven all the way through, so that the points and not the heads are sticking out. Cut-nails preferably, not wire-nails. Then you bind the head with wire so the nails are less likely to back out, and to add both weight and resistance to shattering.
But you don't generally want spiky weapons if you are on foot in an urban or otherwise space-restricted combat. The spikes get snagged in the clothing and armor of people around you and you end up getting gakked while you're trying to pull free.