Is using Maximum Allowed Timestep to slow down game a good idea?

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I have set my Maximum Allowed Timestep to 0.05 (which is far from the default of 0.3333). I’ve done this so that if the game dips below 20FPS, the game starts to slow down rather than skipping a bunch of frames. I’d rather the game slows down than everything teleporting everywhere which would be very confusing to the player.

Is this the correct usage of Maximum Allowed Timestep?
Am I missing something here?
Could this lead to potential problems?

Thanks!
P