It's also great for set returning functions. Even cooler, you don't need to explicitly specify the LATERAL keyword. The query planner will add it for you automatically:
-- NOTE: WITH clause is just to fake a table with data:
WITH foo AS (
SELECT 'a' AS name
, 2 AS quantity
UNION ALL
SELECT 'b' AS name
, 4 AS quantity)
SELECT t.*
, x
FROM foo t
-- No need to say "LATERAL" here as it's added automatically
, generate_series(1,quantity) x;
name | quantity | x
------+----------+---
a | 2 | 1
a | 2 | 2
b | 4 | 1
b | 4 | 2
b | 4 | 3
b | 4 | 4
(6 rows)