Looks like a controlled air leak in the intake. And, from my IC Engines class...
Engine breaking would be reduced because the bike isn't trying to suck air past the almost/completely closed throttle body.
A carb'd bike, might see some fuel economy increases at part throttle due to reduction in pumping losses (energy spent to suck the air into the engine)... but I would think that the greater effect would be to reduce overall airflow through the carb preventing proper fuel mix, reduction in power, and burn issues at all throttle positions.
A FI bike, the ecu would be constantly adjusting to keep the air/fuel in stoich. So you would have the full amount of air going into the engine, and the ecu pumping enough fuel through the injectors to keep the bike at stoich... and I'd say you'd have a problem where either 1) the fuel pools in the intake runner / valve area or 2) the bike continues to produce near full power assuming the fuel vaporizes and makes it into the cylinder. Imagine letting of the throttle and the engine not slowing down
Either way, it's a bad idea.
I'll bring the idea up to my IC-Engine professor and give a much better and more detailed explanation of why it's totally ridiculous.