Well, exactly that - It does whatever it takes
I mean, if you play it on turn three, it is a 3-mana 2/2 that leaves behind a 1/1, and thats a card you would play a decent chunk of the time -- and as I said, it scales all game long, leaving behind more and more formidable tokens that will then also leave behind other tokens if they have enough counters
You could also use them for showing buffs or debuffs for Lore, Strength, Willpower e.t.c Just be careful to make it obvious what each token means
The ability is insane as it triggers during your combat, and everyone else's combats as well
Yeah, the flavour here is that the stronger kobolds abuse the weak and this abuse is what gives them the stat gain as the lesser kobolds are forced to work