Short term volume replacement and oxygen exchanging capacity is all they're looking to accomplish. Something that can be given short term when blood isn't available or in short supply (hours not days). The underlying science is sound, it just hasn't been done successfully yet, though not for lack of trying. A Japanese company spent GOBS of money trying to develop a blood substitute a while back. Others have been dabbling in it.
A product such as this would never replace our current system of blood donation and supply, so its potential is rather limited. Blood is still vastly superior and nothing has come remotely close to simulating the real thing. When a person loses significant amounts of blood, they lose far more than just hemoglobin and fluid volume. There are many blood and plasma sub-components that are lost as well; platelets, clotting factors, proteins, enzymes, etc.
A blood 'substitute' would be used secondarily to shore-up blood shortages. The reason a product like this was approved for veterinary use is because the veterinary field had no adequate primary blood supply system, making anything a better option than nothing.
There is nothing undesirable or inferior about the current system, if we could just convince more people that an hour out of their life every six months is something worthwhile.