To say that it only works on text is not true for us and does not reflect our experience with it. Most of our scanned documents have redactions in place that continue to display correctly when opened by Preview. We have used the Preview redact in our workflow for some time now, when it isn't broken on and off (there is a way around it when it's not working, but it requires several more mouse clicks, and overwriting the old document to make sure the final PDF can't be un-redacted).
This redact issue is not happening during the act of redacting, it is upon saving the document, the redaction is randomly moved to another place on the document instead of where it was placed, suggesting the issue is a write error upon saving.
Further testing has shown that Adobe Acrobat opens our Preview created redacted file with no issues, further indicating to me that Preview is the problem. If Preview mangles it, Acrobat is showing the mangled file that Preview created.
Now all of that being said, while Acrobat Reader is free, it's sad that we may have to consider using a non-Apple product for our simple redaction needs, and Acrobat Reader is WAY more bloated than Preview.