What is an Arduino Ethernet Shield used for?
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Answer it!
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The arduino by itself can do some neat stuff, and it gets even MORE powerful when you include external communications. You can stick with usb, but if you want to access say...a sensor...from 12 places on your network (or the entire interwebs) then ethernet is the way to go. It's *the* de-facto network standard for most every computer with a wired connection in the world. Some use proprietary components, (other options include fibre or wifi) - but by and large you'll have a hard time finding a computer without ethernet over rj45 (utp) cable.
an xbee does similar, but instead of wired, it uses its own built in protocol to beam serial data over the magic invisible tubes of the em spectrum.
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