Its main purpose, to add to olsenn's summary, is to characterize your power supply. It its simplest form, imagine a rechargeable battery you use for a flashlight. How long will it last under use? Rather than use it and find out, you can model its behavior with the eload on your bench. The Chinese have changed the pricing scheme because before that, most eloads sold were in very specialized applications and very high power handling capacity, and the limited market made them expensive. If you have an aftermarket PSU you are going to apply to a device, you can easily test its rated specs. You can find a discussion on the Maynuo, Itech, B&K, and Array in the archives.
For just battery applications, there is also this, made in USA and low cost:
http://www.westmountainradio.com/product_info.php?products_id=cba4If you do such tests infrequently, you can use a good power resistor and a well ventilated spot, about $20 for 100 Watts. I did so for many years, but after getting myself and wires physically burned by accident from making errors in my test set up by doing it once too many tmes, getting an eload saved me from aggravation, and injury, not to mention doing more tests under more conditions because it easier to set up and reconfigure.