It lets Rust claim to be UB free without delivering the actual value of being UB free. You still can't rely on a given behavior because it doesn't have one behavior, it has two, and the two behaviors are wildly incompatible with each other.
As a starter / refresher perhaps, both of these are perfectly permissible and happen in practice with UB, but never with "wrap or panic" / "implementation defined" behavior: https://mohitmv.github.io/blog/Shocking-Undefined-Behaviour-... This kind of thing is an example of the "time travel" stevekablanik is referring to, stuff that is literally impossible as written, that absolutely no human would consider to be a reasonable execution of the code, but occurs regularly with UB.
It is extremely meaningfully different, because the range of options of what can happen is bounded in one case (either two's compliment wrapping, or panic) and unbounded in the other case (literally anything is allowed to happen, including time travel).
This is "implementation defined behavior" in C and C++'s terms, not "undefined behavior."
The default behavior helps you avoid wrapping without permanently bogging down your performance. It makes sense as an option.