You raise a good point. The key to not deforming the threads on the post with any of these tools is to loosen the nut far enough that it can be turned off at the end of the process when the stud is free to spin (ie, past the Nylock portion) but still low enough that the nut protects the end of the stud. Sometimes the locking nut must be removed entirely and a non-locker used as a surrogate. I set the nut so that it stands flush with or just slightly proud of the post. A small robust piece of steel can also be placed on top of the nut to further reduce the liklihood of damage. Doesn't your fork ruin the grease boot every time?
Don't know what the product being shipped today looks like but my "cheapie" is very nicely finished and chrome plated. To be honest, I was amazed at the quality when I got it.