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Consider this scenario which I see many times while towing:
Pulling heavy for example and the load, rate of climb, throttle position etc. has the transmission converter unlocked, fluid shear in that state causes temperatures to soar. Seeing this happen on my trans temp gauge, I flip the switch which locks the converter and stops fluid shear. Fluid temperature not only stops climbing but begins to drop.
Its also necessary for exhaust brake use with an automatic, if the converter is unlocked you wont get any engine braking.
The switch I use is incorporated into my BD Tow-Loc which also controls my exhaust brake.