They are illegal on show grounds, and yes, are frowned upon by the majority of the miniature horse community.
I am trying to learn about Modern shetlands myself, and the use of artificial aids (or action aids) is much more commonly accepted as it is almost a required practice.
I love love LOVE a horse with a big trot, the more action the better! But it has to have that BEFORE you even THINK of using action aids!!! I will only buy a horse that has a lot of action, naturally, barefoot. I just love a horse that can move. Soooo that is why I love the Moderns, and admire their athleticism. But minis can have a lot of motion, too, even without the artificial aids that other breeds use.
The basic theory about weights (chains simply add weight) is that it helps train the muscles to anticipate using more strength to lift the leg. It is like weight lifting for the leg muscles. Once the muscles grow used to having to move the leg with so much weight, when you remove the weight (for the show ring) the muscles over exaggerate in anticpation of having more weight (which is suddenly gone) and the horse will lift it's legs higher.
At first the horse will put a lot of effort into moving the leg, and it will appear to have a lot of action. But it takes a long time to condition and train those muscles, it does not happen very quickly.
Sometimes trainers will put the weights/chains on only when the horse is worked. Others leave the weights on all the time, even when the horse is in it's stall.
I have heard a lot of analogies... some people say it's like having a cast on your arm or leg for a long time, and then when you remove it your arm feels so light and easy to swing around! I have also likened it to a violinist who tapes a quarter to the end of their bow, to help train their arm muscles to swing the bow over the violin strings the opposite way. Or a baseball player who tapes a weight to the end of their bat to improve the swing. Or to people who walk for exercise, using leg weights to increase the amount the muscle is working while you walk.
Generally it adds weight to the end of the pendulum (the leg) and exaggerates the action. It is for those Park Harness minis mostly, some Pleasure harness minis use it too.
Also, something the chains do is discourage cantering or "going fast" as it is uncomfortable. The chains shorten the stride and make it higher, so the horse works harder at staying in one place basically. Chains also are very noisy, I have heard that some horses are able to get more consistent rhythm and cadence to their trot because they can hear it. I have also heard it makes them pay more attention to their feet, rather than everything else that is going on.
Remember, it is fairly obvious when the horse has had artificial enhancement and some judges will frown upon it. The horse will trot unnaturally and will lose action as they tire. It is definitely something you will have to consider, being "worth it."
I feel that with the minis, they are in such an infant stage for the driving portion, that action needs to be BRED in at this point. Not enhanced.
Andrea
Okay I just thought of an illustration for you...
Here is my Modern shetland mare barefoot, without chains:
So, I don't think that chains/weights are very extreme, as the Moderns and other breeds such as Saddlebred and Morgans have many other tools they use which are more extreme. If you put too much weight though, you may injure your horse by using undue strain. Also, the type of chains it important, I had bought some recommended to me but I found they were bruising my pony's feet too much and I abandoned them. It's best to take your time and consider if it's "worth it."
There is a LOT of negative connotations with chains and weights in this breed so tread carefully. I personally wish it wasn't so taboo, because I feel the enemy to ignorance and gossip is information. I wish the information was more readily available, so you could choose intelligently and make a wise decision.
I barely can learn anything about action aids... I've only put chains on my one pony mare maybe half a dozen times, during a workout. I am still at the "personal debate" section in my mind, not sure where to progress or what happy medium to choose. If you need to PM me, that's fine, I will be happy to share anything you want to know.
Andrea