Kiribanda,
You are right about how it works, but your statement about it not being suitable for speed control flies in the face of almost 100 years of people doing that exact application successfully!
Flomatcher is named that because that is exactly what they do; use wound rotor motors and liquid rheostats to control the speed of pump motors in order to match the flow to the application requirements. And Flomatcher did not invent this idea nor have an exclusive on it. Before the advent of Inverter drives, this was the premier "high tech" method of controlling motor speed. Ski lifts are another major application world-wide that used WRIM controls as speed control. Technically you are right that it does not directly control speed as we understand it now, i.e. frequency control. However if you can modulate output torque into a given load, without burning up the induction motor, you will in EFFECT be controlling speed. That is of course exactly what a WRIM and controller do.
"Venditori de oleum-vipera non vigere excordis populi"