This cards effect is best used in tandem with "Esper Girl" or "Mental Seeker". Essentially drawing a free card from your Deck or banishing a card from your opponent's Deck.
This card is a prime candidate for the "Creature Swap"-esque effect of "Psychic Jumper". Simply use "Emergency Teleport" or another copy of "Serene Psychic Witch" to get this card on the field with "Jumper", pay 1000 Life Points, and steal your opponent's best monster. Then, you can destroy it in battle to trigger its effect in your Graveyard and potentially do it again.
Being a Psychic-Type itself, if you manage to Synchro Summon any of the "Gusto" Synchro Monsters, you can then use "Miracle Synchro Fusion" to banish this card along the "Gusto" Synchro Monster to Fusion Summon "Ultimate Axon Kicker". This way, not only you have an invincible beater, but you can also keeping essential "Gusto" monsters in your Graveyard such as "Winda, Priestess of Gusto" and "Caam, Serenity of Gusto" to be recycled later by "Gusto" support cards or another "Caam".