Yes, you can use the oil for other purposes, although due to the strong fish aroma and taste it would probably best be used only in a fish dish. I frequently use the oil from anchovies to fry onions to add to a Bolognese sauce to add a depth of flavour, a few anchovies being frequently added to this dish as "Italian MSG". It also works well added to tomato sauce for pizza toppings.
I would use the oil to fry onions and garlic for say, a fish casserole or stew. I would add some additional olive oil as well though, as the smoke point may be affected by the soluble fish oil already in the product.
Fish is a very strong aroma as you say, so you have to be careful what you use it in as it will overpower and dominate. Although I have not tried it, it may also work well as a replacement for fish sauce in some Thai dishes.