Dave Winer spells it out:
When people ask me what RSS is good for, I start with "automated web surfing." It gets you more news for the time you put into using the Internet. If you don't want more news then RSS is probably not for you. But if there are subjects that you are intensely interested in, and if the people covering the topics also offer the information in RSS, then your computer (or a web site) can make web surfing a richer and perhaps more productive experience.
I could write about this (and have), but it would be widely flamed about, by the same people who control the conversation on Google.
Bonus link: Jo Twist wrote an excellent What Is RSS piece for the BBC.
Rex Hammock has a better search term for getting useful info about RSS.
Scripting News: 7/25/2006
h/t to Rex Hammock (See link above).