Earlier quoted context omitted.
It's probably for building appliance/kiosk systems, though it's handy for anything where you just want to run a single application fullscreen.
If you want a single application fullscreen, you can just not start a window manager though.
One specific case I dealt with was Chrome/Chromium that provided all sorts of annoyances until we dropped in a minimal WM (back then it was awesomewm, I didn't know about cage or it didn't exist yet)