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A good example would be if you are a sports photographer, and your camera's auto-ISO feature assumes that you are shooting handheld still subjects. Thus, it will only crank up the ISO once shutter speed goes below 1/60th or something like that.
But if you're shooting fast moving things, you would want ISO to be bumped up if it falls below 1/500 or 1/1000th perhaps. The Canon 7D can't do that normally, for example, but it probably could with custom programmed firmware. This is not a feature that you would ever think about again, though, probably, after installing it. Thus, it improves your exposures for your usage case, but does not add complexity.
Why not just use the manual ISO setting?