Actually... Goblin out of the Frying Pan got more credit than that, because the scenario is wrong. Blue Eyes White Dragon is destroyed (send to the graveyard), and you draw another BEWD (mill), and the opponent wasted his smashing ground if BEWD is the only monster on your side of the field (however, if you got another one, then it'll seek out a new target and destroy that instead.)
It's a 2-for-1, yes. It's bad? Definitely. It's worse? Not quite... It's supposedly used in decks that rely on more copies of the same monster in the graveyard, but too bad there's no good monsters in this theme. But, I thought of a use for it, unlike Fusionist =x
Malfunction is some major situational hate against 2 cards: Solemn Judgment and Return from the Different Dimension. When those two activate, you pay a game ending amount of LP. That's a cost, remember. You flip it back down with Malfunction, and you've just cut your opponent's LP in half for basically no reason. Also, turning it facedown may allow it to never see face on earth again, since trap cards need a specific "response" in order to activate. Let's say you're pushing for the winning blow, and the opponent uses Sakuretsu to destroy your monster. Well, flip it facedown, and your monster keeps attacking and win. (it can't activate again in the same turn, since this IS a counter trap, which means only other counter trap can stop it. Also, Sakuretsu Armor miss its timing to try to go again since it'll move on to damage phase, and not battle phase.)
Very situational, and there's better cards.. but at least like I said, it can do *something.*
Try making Fusionist do something >>; it takes 2 cards to get out, and it got stats that doesn't even allow it to overrun a Sangan. Worse of all, it's a normal monster that needs to be fusion summoned.