It's cute. The Warpsmith tax is annoying though unlike the other formations, you don't need to keep your stuff in a bubble to use it. It most likely will be added to armies (read: Daemon armies) as a way for you to run multiple Maulerfiends. The Dreads don't get any real bonus other than the leader, Defilers are still overpriced and while giving Forgefiends multiple copies of Daemonforge is cute, people wanting weight of dakka for their Chaos armies are probably going to bring a double-Gatling Renegade instead (strictly speaking in terms of points and not money of course

). If you want solo dreads, you would run a Mayhem Pack instead.
Practically speaking, having a Maulerfiend able to challenge Meltabomb sergeants is rather nice. If
GW further updates the Chaos rules allowing Helbrute squadrons, Look Out Sir shenanigans would be an option.
With Forgeworld, you could make the case for giving an Alpha Brute Death of Kasr Lutien, as the 4+ invulnerable will both help it keep its hull points available for the rest of your guys to cast with, and protect it some should they fail anyway.