Watchdogd currently disables the watchdog when it exits, such as during rc.shutdown processing. That leaves the system vulnerable to getting hung or deadlocked during the shutdown part of a reboot. For embedded systems it's especially important that the hardware watchdog always be active. It can also be useful for servers that are administered remotely.
The new -x <seconds> option tells watchdogd to program the watchdog with the given timeout just before exiting.
The exit value is also used internally in the "failsafe" handling (which used to just disable the watchdog), on the theory that if you're using this option, "safe" means having the watchdog always running, not disabled.
The default is still to disable the watchdog on exit if -x is not specified.