You're right, the connectors look like it's designed to fit inline as a noise suppressor.A condenser for a point distributor wouldn't have that much wire on it. It's like maybe 2 inches long and fits inside the distributor on my Buick.
This looks like it's some sort of noise suppression for a radio. When I was a kid my dad had an old radio that may have been in his 68 mustang and it had something like this on it.