This is actually huge. A common problem that arises when you write applications is you want to INSERT if key does not exist else UPDATE. The right way of doing this without an upsert is using a transaction. However this will make life easier as you can do it directly in one SQL statement.
Hence this is more than just saving typing a couple lines -- this saves writing entire stupid loops to do what is conceptually a simple (and very common) operation.
Postgres gets better and better.