This module has exactly a few use cases:
a) The paranoid, tinfoil hat people who don't want Drupal.org to have any information about the modules installed on their sites, even at the expense of their sites being secure.
b) Large organizations with their own Drupal distribution who want to handle the flow of update notifications.
c) Organizations who use a third party administration service which manages updates for them
d) Distributions whom need to control how updates are created.

If you do not fall under these use cases, you probably should not use this module. It will prevent core's Update status module from being enabled, by design. Please see http://drupal.org/node/282919#comment-1074620 for more details.

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