Might not make sense for the military, but such a setup could potentially make sense from a police POV.
Having 4x magnification could be very useful in hostage rescue/counter terrorism ops in urban and densely populated locations where the added accuracy from the scope married with a gun-round combo with minimal risk of over penetration could be very valuable to first responders. And for urban ops in most counter terrorism situations, the engagement range for fast paced, dynamic, first responder scenarios, the engagement ranges are going to be very short, so 150-200m should cover the vast majority of those scenarios.
Obviously you don’t want your whole SWAT team so equipped, but having one member in the team with this mini-DMR setup would make sense in my view. It would certainly be much safer and user friendly then the typical 556/5.8 combat rifles I regularly see at airports and city centres (western nations only) world wide.
You are never going to face COD ‘no-Russian’ style terrorist attacks in the real world for which most armed police seemed to be gearing up for. In the real world, for 99.9% of realistic terrorism scenarios, you are going to be seeing lone or small groups of terrorists with knives or similar primitive weapons, where precision and reaction times are going to be key to minimising civilian casualties and collateral damage.
Every time I see police with such military weapons, I just cringe internally and pity the officers if they ever need to use those weapons for real, as they would be faced with the unenviable choice of making a timely shot or waiting for a safe shot with a safe backstop before firing. I can easily see lives being lost needlessly either way and the officers being tormented with what ifs no matter how they played it.