Why would this be useful?
- Testing - quickly deploy a version of an OS and software to a fleet, then reboot into a pristine state or new state.
- Lab cost reduction. No hard drives in most of the fleet. Less power used.
- Consistent version across many test servers. People change things, reboot or power cycle and you are back into the same state.
I've used something like this in production before using NFS diskless. That was a bit messy. For labs, testing, it is great.