Yes, a froe does work great for splitting boards, shingles, saplings, firewood, etc. And some also have the very end sharpened as well - so that you can use it like a long-bladed hatchet for "trimming" the stuff you were splitting.
Small versions work well for splitting out strips of wood for basket making. Some basket makers even have a "knife" version for that smaller/thinner splitting work. Same blade shape, but with a regular knife handle instead of that eye socket for a handle. You don't get the leverage with the knife version, but you are generally working much smaller wood.
And, yes, a lot of them just get tossed into the tool box. Rough on the cutting edge. A sheath helps that, and yourself when you are rummaging around in that toolbox for other things.
Mikey - that grumpy ol' German blacksmith out in the Hinterlands