Can you give me some example of it's application?
You can get away with a much simpler design and lower production tolerances by doing this - enabling you to use less time and use cheaper production techniques.
I was always under the assumption that all-in-one minicomputers were for prototyping and hobbyist engineering. I reformat my Pi often for all the little things I want to try.
Edit: Old blog post with tech details: https://www.raspberrypi.org/blog/creating-and-kickstarting-s...