Main use for consumers / tinkers. In industry, the main use is during pre-silicon development. You emulate the target processor and model the periphs and you have a complete virtual representation of your new SoC/MCU/etc before the hardware is available. Benefit being once you do get the hardware, you already have the entire software stack nearly ready to go and already tested.
This. It is far easier to debug something like obfuscated DRM code when you have it running inside an emulator and can wind the code forwards and backwards and see the whole machine, rather than trying to debug it on the actual hardware where your options are more limited.