Right, they start somewhere insane and then dial it down. The applications are immediate.
Will it be practical for combat in the next 20 years? Probably not. But it could be used in EOD (Explosives and Ordinance Disposal) where you would have the advantage of human dexterity in disabling a bomb without having to risk an actual person. (They already use small robots as is.) It could also be useful in firefighting situations - a tethered "avatar" robot could go far closer to a fire and fight it (or inside a building in danger of collapsing) than a human could. (I refrain from saying that it would do things a human is unwilling to do, because we have and have had brave men step into incredibly dangerous situations to save lives. It is an important and honorable sacrifice, but with technology it can no longer be a necessity.)