It's a nice idea, I think.
One instance where I think this design would be particularly useful is if, say, one was going travelling.
Due to baggage restrictions you can't take liquids / creams and that puts your favourite shave cream out of play.
You're travelling somewhere exotic and decide, so be it.
I'll pick up a local product, which could be hard soap, croap or cream.
Not only does the variable loft brush adjust to accomodate the new choice, which may not be a choice at all if there's limited availability, but to space save and protect itself during travel storage, i.e. rolling around in the bottom of a rucksack, you can let it dry then retract the loft fully into the handle, thereby protecting the base of the hairs from damage, in much the same way as the Simpsons Major.
That's just one scenario where this utility brush comes into its own.