I wouldn't sweat it. This is a very rarely used feature. It's used only once in the entire Ext code base, but if it had a less scary and more descriptive name... maybe it would be used more often
We chose a somewhat out-of-the-way name for this config (though it is in legue with "xtype" and "xclass") to not be confused with "override" in Ext.define. It is also something you probably don't need very often. The reason this is even present is that the underlying ability this config uses was needed by Ext.define/override to deal with singletons.
Also, the reason this is only applicable to components is that not all classes have the "config" concept as part of their design. Many classes do, but not all in the framework. And very likely not all classes in user applications.
The good news is that the functionality is now provided by Ext.override when the target of the override is an instance and not a class (which was previously an supported thing). The internal method Mitchell mentioned has been removed in favor of providing this functionality to any class or object via Ext.override.