We use them at my private karate dojo. They offer a moderate amount of padding, yet the fingers are free so you can still grab and such - a necessity since we permit take downs in our sparring. I like them better than the common foam pads, but the foam pads probably offer more cushioning.
The cloth pads are fine for beginners-they are generally cheaper and offer adequate protection. The problem is that I can never get the smell out of them! They are harder to put on/take off than velcro-strapped vinyl pads and they don't last as long.
I had a set of the cloth hand pads and shin/instep pads back in the day, although the fist guards I had didn't have as much padding as the ones in the link you posted. They are good for sparring in the dojang and offer adequate protection for up to moderate contact. Heck, I'd use them in heavy contact if it was permitted but I don't know of any Taekwon-Do style tournaments that permit them (it's either the dipped foam pads for ITF tournaments or the hogu/weird looking fingerless gloves for WTF tournaments now).
IIRC, you could throw them in the washer in the gentle cycle and then the dryer and they held up reasonablly well. Have to use the Macho-type dipped foam now
I had a set of shin/instep cloth pads like the one's in the pic, yes they wera a little dificult to put on and take off but they stayed very good without any movement in my legs, yes if you don't wash them once in a while can get stinky for sure.
Terry maybe I will buy a set of these and prove them again, I really like how thay stick to my legs and the cusionoing is right for me.
My old school used the cloth shin/instep pads. I like them MUCH better than the ridiculous dipped things I'm forced to wear now. Much better coverage, and they don't have the hateful straps underneath that always break or get twisted. In fact, I don't see why the dipped junk is so popular.