Ted C wrote:
Well, they'll produce a lot of blast, but they'll have only marginal fragmentation, which is the really dangerous feature of a purpose-built hand-grenade. We also don't know if they efficiently release all of their stored energy in an overload, so you might not get as much bang for the battery charge as you expect.
And telling your troops to set their sidearms to overload and throw them is a really stupid way to equip them with grenades or even demolition charges.
FUCK (aka Ups, the 2nd

) I wanted to say comparable to 100 respectively 9 Offensive, NOT Defensive

, grenades in my first post; as the numbers above that summarization shows.
Offensive grenades are purpose-build to NOT produce much fragmentation, to limit the lethal zone. A hand phaser I would assume (as Ted C does above) to have similarly limited fragmentation, albeit for other reasons.
The lethal zone will of course go up with the cubic root of the increase in released energy (or square root if ceilings & floors contain the blast to one deck), thus making them more lethal then contemporary Offensive grenades.
And YES! If you give your troops hand phasers for the express purpose of using them as grenades, then you ain't too bright. (I was making a joke in that last line).
But the point is: if the federation don't produce any hand grenades, and the troops know of this field modification, and several of the TNG crew appear to do, then you should expect to see it used by those who carry both a rifle and a sidearm into battle, although perhaps only in desperate situations.
edited once for my rotten spelling