> I gather it's only of relevance if you have a network which doesn't have a router doing DHCP and DNS, but you still want local name resolution; it that correct?
It does two things. For people without DHCP, it lets you allocate a unique IP address amongst your local peers.
Second, it lets you discover both hostnames and services on the local network. For instance, "find a printer on the local network" becomes very easy.
Some printers, multimedia, and chat services use it for local networks. Even if DHCP and DNS are enabled.
If you aren't using any of those services and never have a need of building an ad-hoc network, you probably don't need it running.