Hi Dan,
Sometimes a line that needs shortening is not accessible at the ends, or would be imprudent to untie (I used a sheepshank in this scenario just the other day, when needing to shorten a towing dinghy painter underway. If I had untied the end to shorten, it may have been jerked from my weak fingers, but if I lost my grip on the sheepshank while tying it, the ends were still secured). Sometimes both ends of a line are spliced, making it inconvenient to shorten at the ends, and the sheepshank very conveniently and quickly shortens the bight. As for cutting one leg, I can only say I would recommend against it.
Another use I learned for a sheepshank just recently (from a girl scout) is in tying hair ribbons. Who knew?
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