Thread conditioner is great stuff when you use it correctly. The most popular of them was Thread Heaven, but it's been discontinued. I agree that for needlepoint it's no use, but it's not designed to be used on wool. If you were needlepointing with floss it would be fine.
The single most wonderful use for the stuff is cross stitching with metallics or light effects. The three things I tell everyone who gets frustrated working with metallics is, use thread conditioner, shorter than normal strands, and allow to untwist very regularly.
I don't know what it's made of but definitely not beeswax. But it is amazing. Rho, if you want to try it, your best bet is your LNS* which should have good recommendations.
*local needlework store