I can see how a tool like this could potentially be useful to teachers working with larger classes, or multiple groups of students, to help them keep a reliable record of which students are participating (or misbehaving) in class. Trying to keep track entirely in one's head can be difficult, especially if there are a lot of students, and it's easy for bias to slip in through selective remembering/forgetting of incidents.

Sharing this information with parents, however, seems inappropriate, as does placing a negative value on normal events like using the restroom.