It is easy to remove the suicide levers and either replace the pivots with a non-studded pair or simply saw off the studs and buy a pair of brake hoods (CyclArt and others have these for around $10/pair). I have seen a few higher-end bikes, such as Schwinn Paramounts, with original suicide brakes (and TwinStick stem shifters).
Suicide brake levers have two big limitations: 1) They frequently bottom out before the brakes are fully applied; and 2) The rider is far less stable with his/her hands near the stem than out on the drops. However, I suppose they are potentially useful if you favor John Franklin's "relaxed" position, with your hands on the drops, just above and behind the brake levers themselves.
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"Far and away the best prize that life offers is the chance to work hard at work worth doing." --Theodore Roosevelt
Capo: 1959 Modell Campagnolo, S/N 40324; 1960 Sieger (2), S/N 42624, 42597
Carlton: 1962 Franco Suisse, S/N K7911
Peugeot: 1970 UO-8, S/N 0010468
Bianchi: 1982 Campione d'Italia, S/N 1.M9914
Schwinn: 1988 Project KOM-10, S/N F804069