In what situations would someone want to create a PeopleSoft tools-only database? What would this be useful for?
We created one to run the Performance Monitor.
I've seen them used for completely custom application builds and just a play environment for admins. I'd have to check my notes, but they might be useful for certain 3rd party migration tools as well such as STAT or Phire.
As said earlier, it's mainly use for Peoplesoft Performance Monitor, unfortunately not known well enough by customers even though rather useful.