There are a couple instances in which I would do it.
1. If the bag of water is truly holding the baby back. This happened at my last birth. She had a very strong bag, and it was acting as a sling to keep the baby's head from applying to the cervix and the elasticity was pushing the head right back up when she stopped pushing. And with every contraction she was pushing more water over the head, making the effect worse. I kept waiting for it to break any second, but it wouldn't. Mom was getting tired. I told her the water would eventually break, but at this point she had nothing to lose and everything to gain. I punctured it with a needle and it trickled out slowly. Baby was born 23 minutes later, after 4 hours of pushing.
2. If the mom's been in labor for a really long time and I'm concerned about how the baby's holding up, breaking the water can tell us if there's meconium.
3. As a last ditch effort to augment labor before packing it in and going to the hospital for failure to progress.
My partner had been practicing for 30 years when I started working with her. She had been taught by an old country doctor long ago, and would commonly offer AROM to clients who were in active labor, head well applied to the cervix, with a bulging back. She believed if the bag were out of the way, the head would put more force on the cervix and speed labor along. I followed her lead and offered this to a client with this scenario. Her labor ended up in a transport for FTP. No one else has considered this, but I believe I totally messed up her birth. The baby was big, and I think that even though his head was applied the bag was actually exerting more force against the cervix and once the bag was out of the way dilation receded. So I don't do that anymore.