I too had missed this bit about holding the switch up continuously applies all 4 brakes using the electric servo.
If footbrake pedal suddenly went to the floor and you had no brakes this might give an alternative that will still be working. If you have the time and presence of mind.
I had felt the quite significant jolt if I apply the handbrake a fraction before I have come to a complete stop.
In view of this new (to me) info I have just been out and tested for myself what happens if you apply the handbrake at a higher speed. Unlike when you are stationary it only continues to apply the brakes while you are pulling on the switch. For a fraction of a second the braking effect is quite slight - enough to notice if for instance a curious passenger flicks the switch , but not enough to potentially lose control of the car. If you continue to keep the switch up the car progressively brakes harder ,quickly coming to a controlled emergency stop.
I quickly found I could control the amount of braking quite effectively just by varying how much I was pulling on the switch. Not something you should do habitually of course as you are not in complete control of the steering etc, but I would recommend trying it out somewhere quiet.
Dont let the idea of complex braking systems and electric switch handbrakes put you off buying a Mk4 Jazz. They are common on modern cars from all makers.