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The "civilian" model is a 37mm instead of the military 40mm and I think they'd be fun to shoot parachute flares with or smoke or even a bean bag style round for defence.
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Frank, I believe the bean bag rounds, if used in a civilian 37mm make the weapon a destructive device as the round is considered anti-personnel, and thus no longer just a signaling device. If you get a true 40mm M203 or M37 ( which must be registered as a DD) it doesn't matter what type of rounds you put in it, so long as they not explosive (which each require a seperate registration as a DD).
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There is no practical civilian use for an M203
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Sure there is, and its one of the reasons many of us own guns in the first place - for the sheer fun of it. I've shot plenty of civilian owned 40mm launchers (both M37 and M203) and really enjoy hurling a chalk downrange at the target. That said, keep in mind to buy a true M203 or M37 you're going to have to go through all the same NFA process as you would to own a machinegun or suppressor, except there's far fewer licensed DD dealers to buy from or have it transfered through. Also, as I mentioned above any explosive round would require a seperate registration and transfer of the round as a DD, and no manufacturer of explosive rounds is selling to civilians anyway. Thus your choices if you have a registered M203 or M37 as a civilian are mostly limited to bean bags, .22 beehives, smokes, chalks, and flares.