I don't know how a primitive exoskeleton is more frightening than an M1A2 Abrams, MLRS, B-2 Spirit, AH-64D, or a thermonuclear weapon. It's just a different application of technology to lead to the same result.
If anything, it would allow soldiers to come closer to dangerous situations, and will actually re humanize combat that is now typically fought at ranges of several kilometers.
I`ve seen similar applications before. Pretty neat actually. I think the end result is to develop a mech warrior :)
Considering how much more equipment and supplies soldiers of today have compared to just 50 years ago, even if the exo-suit can`t be used to fight, it would do wonders for speeding up deployment and doing supply runs.