Is it used for something besides coloring and decoloring?
Yes, it was also used as an oxidising agent to help decompose any organic elements, but not an important one.
As to colour its effects vary with the level of oxidisation and can be used, with other materials, to give Reddish Violet, Bluish Violet, Brownish Violet, Indigo Blue, Reddish Brown, Grey and Black in Soda Glass. For lead glass - Red Violet, Blue Violet and Grey.
Arsenious Oxide was used to reduce the colouring effect of Managanese Dioxide used for decolorising. Black glass is a combination of high levels of Manganese Dioxide and cobalt iron or copper oxide.
As a decloriser it was more effective in Potash Glass than Soda glass, effective with lead glass melted in a pot but not in a tank. The effect of reheating tends to reduce the colour so this reduction had to be taken into effect when preparing the batch.
All of the above are gross simplifications of information in Cousen and Hodken. The reality is that its effects are subject to a huge range of parameters and in 1925 the knowledge was largely sketchy based on observation and experience rather than research.
Nickel Oxide was used for decolourising instead in Germany.
A remarkable material.