For someone who knows nothing much about Arduinos, what are a few examples of projects this would be good for?
At Google, Henner Zeller built a circuit pretty much like this that drove an RGB LED and was used for Test status 'orbs'. Basically with a bit of code your orb would turn red if your tests started failing in the continuous build.
I used one to add a foot 'key' to my setup when playing World of Warcraft (it was my push to talk switch) but it could have been anything, it pretended to be a USB keyboard with one key :-).
I've seen them used to pretend to be a mouse and move the mouse around (a 'jiggler') so that a machine wouldn't kick in the screen saver.
All various sorts of things you might want to do with a bit of compute.