Why would it be for smuggling?
I can think of the most obvious reason this Xanax blotter was made. Someone bought a kilo of bulk alprazolam, and wanted to sell it. They were afraid to try to purchase a pill press because they knew the DEA watches that shit. They knew that it'd be a royal pain in the ass to weigh out individual doses and put them into gelcaps. They knew selling pure powder, even 100mg at a time, was extremely dangerous because some of the customers would end up with DUIs and public intoxication charges and bring the police to the dealer's house.
So, they printed cool xanny bar art onto blotter paper, made an ethanol solution of alprazolam with a calculated amount of powder so as to be perfect for laying onto the blotters, and they quickly laid a bunch of sheets.
That was easier than pressing a batch of pills, and using a familiar concept (Xanax bars) makes them easy to sell and takes care of the safety issues as best as possible.