What is the new cycles baking for?

Hey, no i noticed that the new blender 2.71 comes with cycles baking. but i dont understand what it is for?

When i have baked my scene what then? its not making my scene render faster.
And i cannot simply use it in game engine because even though it is baked it doesnt give me that cycles look, it stil have the cheap game engine look, so i can just use a texture instead…

So what exacly should i do with the baked textures? and why are they so much better than just a simple texture