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Yeah I guess heat-shrink would do the job most of the time. But for when you have connectors that are too big to fit the right heat-shrink over or want to splice more than 2 wires together and want a waterproof seal over them this could be useful.
Why not use injectable silicone instead of hot glue though?
Hot glue is cheap, easy to handle and easier to clean away is my guesses… I would definitely try a silicone gun