Oddly this spell would be more useful in real life than in D&D.
But yeah, this is only useful when you're tapped out, needing a rest in an otherwise dangerous place or with very limited time - which are very "specific" situations and may not be useful for many campaigns.
Also useless for elves who can't be put to sleep by magic.
Honestly, as a DM, I have found my party in pretty dire situations where there was NO WAY to take a short rest, but they could have easily managed to buy 10 minutes for Catnap. Also, you can cast it while the wizard is casting a ritual. Sometimes time matters, and having the chance to replenish your health/class feature in 10 minutes goes a long way.