I've been hunting rabbits all summer with a 32wcf 1873 winchester clone and can attest to its poor performance. I just fired my 200th shot, all at game and have only collected about 40 total. They run off when hit and i find blood and fur in the brush where they were upon examination. The 44wcf anchors them even when hit in the stomach almost every time. So I'm also kinda wondering where this cartridge ever really shined myself? My only guess is the soft swagged bullets of the era opened up better than my soft cast 20:1's do today. And perhaps the round performs better on larger game (oddly) due to it being able capitalize on a longer wound channel of denser muscle and bone as compared to little soft bunnies.
That's odd. Are you using a RN bullet? I mean all my life I've never thought anything of shooting rabbits with a .22 LR as it has always worked for me, and have even killed a few feral dogs with it.
As far loading a large caliber down for CAS I see no problem with it, within reason. If you choose a large caliber strictly for CAS then load it down, that makes no sense to me. Just use a smaller caliber. But if your large caliber shooters might use their firearms for other things. I chose the .44 Special for CAS knowing the same firearms with which I competed would serve utilitarian purposes around the place. So, I load mine down for CAS because I see little need in hurling 260 gr. chunks of lead out of my revolvers at almost 1000 fps at target a few short steps away.
Back to the original question, I wonder if the 32-20 was popular due to lack of smaller cartridges for small game? If I'm not mistaken the .22 LR didn't arrive on the scene until around 1887, so there would've been few choices for smaller calibers.
CHT