Long drill bits have endless uses. I have a few, some from my uncle, some from yard sales. Drilling deep holes, obviously; but also holes that need to be somewhere down in an awkward spot, where you can get the bit in but not the whole drill. Stuff like that.
Does it have a cross hole through the root of the flutes, an inch or so back from the tip? If so, it's a bell hanger's bit, used to drill up through the framing in a wall and pull doorbell wire back through the hole (you push the wire through the cross hole, wind it around the flutes so that it doesn't stick out past the body of the bit, and you can pull the bit back, with the wire following through the hole. It looks a bit small for that, though.
In small diameters, the really good bits are tempered so that they're flexible and less likely to break.
First item: spot weld cutter does seem like a possibility.