I think it's funny, because you find it after a (theoretical) deadly fall on corpse who probably thought it would prevent death.

The talisman is a joke item, because the other scenarios would be worse. If the range of "you take fall damage" wouldn't be 16-20m, but like 10-20m, then the talisman would be mandatory to wear in certain areas, with minmaxers constantly switching it out before and after a drop. On the other hand, if it completely negated any fall damage and death by falling, then you completely break parts of the game (a great example would be dropping into Radahn's arena from the cliffs instead, which is normally impossible afaik), and world borders might become unclear, because people might assume they can reach a spot that looks explorable, but doesn't exist.