Would a criminal think to look for valuables tucked inside a power strip? No, probably not. However, if you were to leave it in the vicinity of valuable electronics there is a chance it may get swept up in the melee. Since the safe isn’t actually functional as a power strip (plugging it in only lights up the switch), it would probably be more effective tucked away in the drawer or closet where you store extra cords and miscellaneous gadgets. It could also be useful while traveling.
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I agree with you on this one. If you’re looking for a diversion safe go with something more can form in my opinion. Everyone knows a theif doesn’t stay for long and say they are stealing your TV and gaming systems, odds are they’re just going to grab any cord in sight, and hell the cord that makes noise when moved is certainly going to get noticed. So if you are going to go for one of these at least make sure you add something like tissue to keep it silent when moved.