You would use this function to accept user input in a CMS context. For example, suppose you have a gallery module that your users would like to include in their page content. You can specify a content filter that accepts input in a fashion that is very easy for a user to write (about as easy as BBCode).
This is a suggested syntax, though the syntax can be customized (the function is rather simple).
[my_module_name,
title = "My Custom Title",
gallery = "My First Gallery",
height = 300,
width = 500 ]
Moreover, since it is fairly robust (though certainly could use some improvements), this type of user input can be standardized across many plugins or modules to provide the user with some level of consistency.