We all know that a Choke will limit high frequencies. A Transformer can just be considered a Choke with an additional Winding. If you put the low impedance side of a Transformer in a circuit and leave the high impedance side unconnected, the transformer will act exactly like a Choke; as if it had no additional winding. If you short out the high impedance side, the transformer will act like a straight wire (like it isn't there.) And here's the cool part: if you put a Variable Resistor across the high impedance side of the transformer, you can vary it between open and shorted making it operate like a Variable Choke. When put in series with a Speaker it will operate like a Tone Control to variably limit high frequencies.

Leakage inductance is usually quite low, and I have no doubt that it works! It's an interesting and valid approach, it seems!