Here's a really basic application:
You want a Ravana to engage in a close range fight with a moving Orion. To look good, the Ravana needs to keep its nose pointed at the Orion as the Orion moves through a complex waypoint path. Worse yet, the Orion will at some unpredictable time switch to a new path.
Previously your options were:
-Order the Ravana to attack the Orion. The Ravana will circle the Orion broadside-on, ****ing itself over. Worse yet, the Ravana will always move at maximum table speed.
-Ship-maneuver. Hell and a half to FRED. If the Orion then switches to a new waypoint path at an unpredictable time (say, it's FREDded to start retreating when its hull falls below 30), and you don't know exactly when this will occur, it's a nightmare to set up a new ship-maneuver.
-A pre-baked set of waypoints, with variants for the Ravana to follow based on the time in the mission when the Orion starts retreating. I could explain why this is a huge pita but hahahaahahaaaahahfdshfadf
Now you've got a new option:
-One waypoint constantly updated to match the Orion's coordinates. Tell the Ravana to approach this waypoint at any speed you like, from 1 to max speed. The Ravana will keep its nose on the Orion no matter how close it gets, no matter how the Orion's course changes (even if unpredictably), even if a player is driving the Orion.
And the possibilities that branch out from here are just insane. This will allow enormous power in creating scripted warship AI.
e: One of the only 'dream functions' we have left unfulfilled regarding waypoints is ai-waypoints-fast.