I used a similar rated decoder from Digitrax in one of those switchers and have had no problems. I think it draws less than 1 amp under load if I remember correctly.
The decoder required is based on the amperage needed by the locomotive, not the DCC system. For example if your loco was drawing over 1.5 amps under load, you would need a higher rated decoder such as an NCE D408SR. The older Weaver locos with the very nice Pittman motors require the bigger decoders. They can draw over 2 amps under a heavy load.
the second rating is the "stall current". That is the amperage spike that the motor draws if it hits a short or is stopped by anything external. This amperage is just a spike, but it is much higher than when running. If you run the loco on a bench and hold something on the wheels to load it down until it stops, you will see this. After the stall spike, the draw goes to zero obviously.