This would work just like normal sweep, but it uses a 3D object to create the new shape. This would be particularly useful when working with objects that are on different angles.
For instance, let's say we have cylinder and a round pin (narrow cylinder) that needs to touch the outside of the cylinder along the entire length of the pin. If the two axes are parallel, then that is no problem. However, even though these are very basic bodies, if the axis of the pin is on an angle, it already seems to be nearly impossible to create a geometry that satisfies above requirement by cutting away a section of the disk. Using a 3d object such as the pin as the defining shape for the sweep and then using the newly created sweep as the "cutting tool", would nicely handle this situation.