From reading it, not quite. There's no need for a name and password, and the file will auto-delete it self after some time. SCP won't let you delete, to my knowledge. You'd have to SSH in and delete it manually.
As with most small projects, this fulfills a very specific need for the creator. It lets them be more efficient by removing a small problem from their workflow.
Edit: Looks like the auto-delete isn't implemented yet, though.
ssh to server, tar files to stdout, local stdout to tar unpack? If you need a thirdparty server to transfer log files you are doing it wrong (and slow!)
There are environments to which you can't directly SSH. Imagine that you had to SSH through a port-knocking single bastion server before you can reach actual production servers.
That's more or less the idea, but sbit3 also allows you to easily share the file with others. If you need to share your file, just IM someone the link. At work, I'll often need to get a file to someone who doesn't have access to a server or I'll need to get a file to more than one person.
As with most small projects, this fulfills a very specific need for the creator. It lets them be more efficient by removing a small problem from their workflow.
Edit: Looks like the auto-delete isn't implemented yet, though.