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Unfortunately you're going to have to complete it, because golden hammers cannot be used on boss battles from what I've heard.
I'm going to wait til I can try it co-op with someone.
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I've saved all of my hammers so far, so I do not know any of this from experience, but I've heard they are for obtaining the reward without completing the challenge.
They do give you the trophy, not just reveal it. I used one on the "defeat 10 enemies in cruel brawl" sticker, since I'm probably not going to be able to do that. You just can't use them on boss battles. There are a few things that they can't break though, such as the boss battles, and stuff like "clear classic with all characters" or something like that. I'd definitely save two for the 5 and 10 cruel brawl rewards though, because cruel brawl is no joke.
I'm almost done with the wall of stuff; I've managed to expose all of it and I'm just working on the really difficult things now.