The Great War has a short segment on "the spikey helmets".
The original Pickelhaube was made out of hardened leather. As WWI progressed and Germany experienced shortages, thin steel, tin, felt, even paper was used. As you can imagine, this wasn't much use as a helmet in a modern war. They were expensive, fragile, uncomfortable, and didn't offer much protection against bullets and shrapnel.
The cover had the regiment's number on it for identification.
It was gradually replaced with the cheaper and far more practical steel Stahlelm in 1916.
Did it have any combat value? Prior to WWI shrapnel and head wounds were less of a problem, and hardened leather could turn away a saber blow. WWI brought lavish use of machine guns, snipers, and artillery and suddenly a fancy leather hat was next to useless.
The metal spike was purely for show. It was probably copied from Russian helmets and originally had a horsehair plume.

Tsarist Russian Pickelhauben, with detachable plumes, mid 19th century Source