Not for untrusted content living on the same origin to prevent it from exercising any of the powers that it would ordinarily have to be able to access sensitive data. It's a misleading name and shouldn't have been chosen. There is no combination of CSP or the iframe sandbox attribute that can be relied upon for that purpose. This is a fundamental limitation of the way the specs were written.
(There needs to be a big warning about this on MDN, but moving from the old wiki to a wiki with GitHub for login to the GitHub-based pull request process really didn't help the there's-a-problem-on-this-page-but-limited-resources-to-make-things-better problem.)