IIRC, for "normal" bit widths the codegen basically uses the next larger machine type and preserves zero bits on the high end. An i3 is an i8 with five MSB zeroes (with more custom behavior for "packed" i3 values). It's UB to fill those with non-zero values. For larger bit widths, like u729, you concatenate many large machine types, the compiler generates instructions in an unrolled loop, and the LLVM optimization pass usually doesn't clean that up (though, now that integers are apparently not using the LLVM u729 implementation, perhaps there are some more optimization opportunities).

They're situationally useful, especially when performance isn't an enormous concern. That u729 example above came from a variant sudoku solver I wrote to aid developing new puzzles (easy to check the rough magnitude of the solution space for whatever idea I was mulling over and examine how restricted the board actually was -- just an intermediate step in puzzle design). It's not optimal (hard on the icache, can be hard on registers, other issues abound), but it's dead simple to use, and the assembly isn't terrible, beating all the normal solvers I saw floating around. It's a nice point on the laziness/correctness/good-enough-perf pareto curve.

Another comment mentioned this, but they're great in packed structs for representing weird numeric entities (I think I have a logarithmic number system floating around which does that).

One thing the language does quite a lot is use them to guard against certain classes of human error at compile time. It doesn't perfectly make impossible actions unrepresentable, but shoving a full u32 into a shift argument usually doesn't make sense, so the types are constrained to be smaller.