Yes, I think Project Pacer's main value is as a thought experiment. You can extract energy from any heat engine, and nukes are a BIG heat engine....
I don't see how it could possibly be cost-effective either, even assuming you get the nukes for "free" (you're trying to dispose of them, or something).
---------- Post added at 07:55 AM ---------- Previous post was at 05:53 AM ----------
Actually, now that I think on it, I could think of a fine science-fictiony rationale for Project Pacer-style power plants: powering planetary defenses.
I'm thinking, in particular, of Traveller-style meson guns, which are already buried deep in the planet. To run them, you need gobs of power on standby, but don't want to rely on plants on the surface, or power links which could be interrupted, and you don't want to spend a lot on maintenance of your own, dedicated, power plant.
Pacer would work there: gobs of power for durations on the order of hours or days or perhaps weeks, relatively low maintenance when you're not using it, you can put it right next to the two-mile-deep cavity you've already dug for the meson gun....
(You could try adding rods running to the surface to make it a bomb-pumped X-ray laser as well, but given that this compromises your stealth and doesn't fire very often, I doubt that'd be a very good idea).
For added chrome, you could say that the opposing fleet has neutrino detectors to find your fusion plants, but bomb-pumped plants fire too briefly to triangulate, making the whole thing stealthy! Sure, anyone with some seismographs can figure out where the plants are, but a siesmograph need to be on the surface, and the idea is to keep the bad guys off the surface....
Well, just a notion.