Watermarking is not only about image protection. You could also place website identifiers in the images. If you need a strong image protection library where you can be sure that noone is able to "steal" the original images, then I wouldn't recommend the plugin ;)
Did you look at the right click saved image? because it should contain the watermark, if it's applied on the website, it's not a serverside image anymore, it's a dataURL and therefore has to contain it when you save it.
-- It's okay ;D
Oh, yes, you're right about that! That does make it more useful, now people who casually save your images to look at later know which website it was from.
I'm sorry, but it really is only about rights declaration where needed. The only other useful image task is image attribution, but that needs to be done with text and not a rubber stamp.