To clarify a small point, the nerves can regrow, sometimes they do and sometimes they don’t.
As a vet, I recommend this procedure when the horse has lameness associated with the suspensory but has very few ultrasonographic changes to the structure of the ligament. The suspensory sits between the splint bones, and when it becomes enlarged, it can be made worse by the “pinching” of the splints on either side. That is why we often do the fasciotomy to allow the suspensory somewhere to go when enlarged that doesn’t generate more pain and inflammation.
The innervation of the proximal suspensory is controlled only by that deep branch of the nerve, so you’re not “nerving” your horse in a way that a palmar digital neurectomy “nerves” a navicular horse. The horse will still have most sensation intact but it will help with the pain during rest and recovery, allowing the horse to properly load the limb and rebuild strength and help the fiber pattern of the healing injury align with the normal fibers.