"...why would I want to split wood in a survival situation? Fuzz it up, sure. Split it? How about picking smaller sticks for kindling use..."

There is kindling, and then there is fuel. If all you have is little bitty stuff for kindling, and stuff three or more inches in diameter for fuel, you need some "go between" stuff. So you split the three inch stuff into quarters or so. Throw three inch logs on a pile of burning kindling and your fire will go out...