Yeah, there is something of a dichotomy within FMA training where sometimes it represents a blade, but sometimes its a stick, and sometimes people are willing to trade blows with them.
There is also the fact that anyone with some common sense would not use a light rattan stick for combat. For an impact weapon, you'd use something with some weight. Or you'd just use a blade. Rattan is used because it is cheap, durable, and less likely to hurt someone because it is generally lighter than most hardwoods.
I was gonna say that this might be an eskrido specific drill, perhaps to isolate close quarters strikes and stick grappling, but I didn't see evidence of that.
Edit: This must be a drill, as they've got a rope tying them together. OK. But this eliminates any off-angling which is pretty much the most important thing that you can do in any type of striking match, be it boxing, stickfighting, or whatever.