That was his explanation which may not be the "only" explanation.
It can be used to break a wrist grip. many TCMA system all have this technique. If you move your body back and use your body weight, it will work much better.
The following short clip shows how the longfist system uses the same technique.
http://www.youtube.com/watch?v=lSbc5y6ybsY
Onething that I don't agree with what he said, "When you use the other hand to break your opponent's wrist grip, his free hand can punch you". If you pull your arm back in such a way that you can use his grapping arm to jam his own punching arm, you won't have this problem.