The model pictured was the Softride Frankenstem (I think). You will notice that it has a parallelogram design so the bars don't change their angle as the stem flexes. This was about the cream of the crop in suspension stems. I had an older steel version and it was the bee's knees, IMHO. Until about the third generation of suspension forks came out (RockShox Judy) I think the stem was actually a better way to go.
Thomas Frishknecht (sp?) won a bunch of world cup races using one, I believe... but that doesn't prove anything, other than that they were not a complete hindrance.