There are various uses for the slot, including: usb add in cards, firewire add in cards, sata add in cards, networking(ethernet) cards, and even a graphics card for x1 slots.
And if your next question is "why not use PCI-E 16x", then the reason is pretty plain: it's cheaper. 1x requires 16 times less circuitry saving a lot of PCB and silicon real estate.
A single PCI-E lane is about 2x faster than PCI. PCI-E is also full duplex, meaning that if you send and receive at the same time, a 1x link can be up to 4 times as fast as plain PCI.
Anything can benefit from PCI-E.. Since PCI-E is not a bus, every device on it has a full-duplex dedicated link - no more waiting behind each other to transfer data.