Actually it does. It lowers your body aggro so you do not pull as many mobs as you otherwise would during your hasty retreat.
This is not true. It reduces your threat, it does not reduce your aggro radius. The spell that reduces aggro radius is Mind Soothe and you cast it on mobs, not yourself.
FWIW, I HAVE experimented with this, and I would hope you would do the same. Find a mob, prox aggro it, run away. Wait for it to reset, fade, and prox aggro it again. You will not get any closer the second time.