I agree with the above. I've used Observe successfully in all four cases:
- Need a Manipulate or Master's Mend badly, but are 6 or less CP short, Observe and hope for a Good status for Tricks of the Trade.
- Have used Great Strides and Innovation and am ready for my grand slam Touch, Observe and hope for a Good status so the slam will be that much slammier.
- An Excellent status has just passed, and I don't want to waste a Touch on a Poor status. Observe, and the bad status passes harmlessly. (Usually I'd just do a Synthesis step here, but if doing so would finish the synth prematurely, Observe will help.)
- I used Manipulate at 10%, and need to wait a step before I can Touch or Synthesize. Observe gives the Durability time to regenerate to the point where it's safe to Touch or Synthesize.