Willjp and Manticore--When "burning" the hoof with a hot shoe, they do use the one that has been shaped and fitted to the hoof, and which will shortly be nailed to it.

Horseshoes are made into all kinds of decorative fixtures. Generally new horseshoes are used for this, and then coated with rust preventative of various kinds. They're used as coat hooks, wine racks, gun racks, paper towel holders, and so on. It looks like this is in that general category, but my best guess for the actual use of the thing is "torch holder."

Looks like it's used to make a hole bigger: screwing it into a hole forces the hole wider. Although it seems Chris P may have the right of it.

I thought it was a twitch too, but on looking more closely the leather doesn't look strong enough.

Aw, I should've checked earlier. Everybody beat me to it. I have a 6 of these on my workshop wall (in black). Yes, of course it's a saddle rack. Specifically, it's an English saddle rack, being curved the way it is; a Western saddle rack is straighter, longer, and generally looks a little more heavy duty.