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If I understand correctly, this is meant to be used to help implement existing known good crypto algorithms correctly, not help design new crypto algorithms, which you absolutely should not do unless you're one of the few (thousand? hundred? dozen?) qualified to do so.

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No, it's useful for both.

Here's a presentation they gave in 2012 about Cryptol that does a pretty good job explaining it:

http://2012.sharcs.org/slides/hurd.pdf

I think Cryptol will make it much easier to become qualified to write crypto because it makes the programming more similar to the math. Your average programmer will be able to start learning how to implement crypto from a much more rigorously mathematical standpoint, and inexperienced developers will write safer code. Seems pretty neat.

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