We have used a coyote decoy in the past. We started running into situations where the coyotes were doing run throughs of our stands. Using a decoy got coyotes to stop and pose for the shot. We also used the decoy to try and trigger a hard charging response by using it in conjunction with another decoy like a rabbit or woodpecker. It seemed to make the coyotes charge in harder trying to beat the "other coyote" to the prey.
The downside that we saw to using decoys is that some guys seem to get lazy in their stand set ups. They didn't watch their wind direction, cover, etc...they just tried to rely on the decoy to overcome the other stand deficiencies. Their success rates started to go down. A decoy is not and end-all-fix-all for predator hunting. It can be used with success when used on a good stand set up. But don't use it to do lazy stands...