You are correct on the 2nd one in that it’s usefulness is derived from the scale when compared to other players.
Like you mentioned, it is combining two opposing forms of calculations so when added together it cannot represent a single entity.
As others have said, it basically represents a “catch all” statistic that shows the best all around hitters so in theory, the higher the number when compared to others in the league, the better the number. Some years the leaders are in the 900s, some years in the 1,000s (1.000s to be exact).
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