The design itself makes little sense for its role. It's a command 'Mech, but it spends 6 tons on fire support? Why? Its armor is so paper thin that even a half-hearted assault can put it in serious danger. Nothing about the Cyclops says "command" to me, anymore than a Hunchback does. They serve the exact, same combat role.
A commander shouldn´t get into the thick of battle... but with an AC/20, SRM-4 and two med lasers, you´d have to, in order to get into range of your weapons. So the LRM-10 is there to give the commander some way to "contribute" without getting into the thick of battle, and the thin armor is there to remind him that getting shot at - such as by getting into the think of battle - is a bad idea.
It´s a way to keep the commander safe. A stupid way to do so, but a way.
Myself, I´d rather have a 3025 Awesome or Stalker as a command mech than a 3025 Cyclops.
Heck, even the -3E Banshee makes more sense as a command mech - tough enough to not be easily taken out, not well-armed enough to be a threat worth concentrating on, fast for its size, and what weapons it has are almost all long-ranged enough that the commander can keep a distance from the enemy and still kinda contribute to the battle.