I've seen many similar implements, but yours is certainly the smallest hammer-plier I've ever clapped eyes on. Maybe it could be useful for driving thumbtacks into a bulletin board, or something.
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I don't know if I should be worried or relieved to find out that there are other, larger, versions/variations of this.
There is indeed. This type of thing has been one of those perennial "gifts for dad" sorts of tat you find in department stores on an endcap in front of the ties, for people with little care and even less imagination.
The usual example is about 6" long. There are also versions that trade the nail puller claw for a tiny axe, which is an even worse idea.