It allows you to connect to Wireless Networks (802.11 standards) as opposed to connecting wirelessly through bluetooth or GSM or EDGE or 3G or HSDPA, etc.
Basically, it allows you to connect to the wireless networks that "normal" PC's connect to. You could use this for various things: file transfers, sharing an Internet connection, etc...
If you have a phone like the HTC Tytn or other good Wifi Cellphone, u can connect to your Wifi ADSL router. And surf the internet(emails and web, or download) from your cellphone. *but on your adsl cap, not via your phones GPRS/3G/HSDPA or whotever*
ADSL cap costs around R70 per gig. so you can use SKype or anything like that inside your home. (aslong as you are within the wifi range)
So if I connect the cellphone to my laptop as a modem and am in a wifi area, I can connect at no charge.
But then most laptops have wifi anyway. So what is the benefit?