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Why is this used as a middle layer rather than mixing it in with the paint you want to crackle?

Basically you can't use too much paint with it as it will inhibit the crackle effect to almost zero. I think in most cases you should only use 10% paint in any mix. If you go to youtube and find Geek gaming scenics, he does a test video on using crackle paste and the pros and cons.

Thanks I have bought some of GSW crackle paint to compare the 2. The firs main difference is that you are stuck with one colour for GSW

How crackle medium works is that the top layer dries out before the bottom layer. As the bottom layer next dries out, it then "pulls apart" the top layer, causing the crackle.

As you add paint, you're adding, a different medium so the crackle medium loses its effectiveness, resulting in the paint not crackling.

In fact, with craft paint, you need to put a thick layer of medium, otherwise, it won't crackle. It's like those dried mud flats. If there's not a thick enough, the mud won't have the crack effect.

Some tips on using hobby crackle paint (GW's Agrellan Earth on bases) : https://www.reddit.com/r/minipainting/comments/1sgpth/problems_basing_with_agrellan_earth/

So... It's really easy to tint crackle medium. Just use pigments...