Looks top heavy to me, and no wind protection from less than zero F windchill factors at speed.. so, what did they design it like this for?

I'd say great for city commuting in the winter, because that narrow little track will be useless in deep powder snow, nothing to keep you from the winds, so high speed trails are out.

http://hiconsumption.com/2016/04/sno-ped-snowmobile/