Rank 1 - ??? Basically it gives you a new tool. Said tool allows you to scan an enemy player. Then your cloak allows you to look like said player. for a short duration which increases based on the cloak rank. I think people could have some fun with it.
No. There already to much issues with identifying friend from foe, and it's bad have that kind of issue in a game with enabled friendly fire. It's not TF2, you can't just shoot a guy to check if he's not a spy.
scan a max and charge out shouting RAAAAWR! and watch the little people run until they realise you're just a tiny little man in spandex XD