Is this element some kind of Technic connector?
Hooray, I get to answer a question!

This is not a piece for launching missiles.  It's actually part of an old steering assembly from some late 80s and 90s Technic sets.

Here's what the whole thing looks like:



And a view of the piece in question:



And an example of how it is meant to be used:



The teeth on the outside of the piece help lock it into one of several different inclinations, so you can vary the angle at which the steering column exits the assembly.

Here is the piece on BrickLink: http://www.bricklink.com/catalogItem.asp?P=2790 (ooooo four digit part number!)

Along with the bottom assembly: http://www.bricklink.com/catalogItem.asp?P=2792

The main rack: http://www.bricklink.com/catalogItem.asp?P=2791

And the steering arms: http://www.bricklink.com/catalogItem.asp?P=4261