It allows you to broadcast events from anywhere in your application and subscribe to them anywhere else. No need for bubbling through layers of UI.
I owe the guys at DevelopmentArc a pint or two...
Just a quick tip - if you have components within components within components and bubbling events are slowing your Flex application down to a crawl, take a look at the implementation of the publisher/subscriber pattern (you did read Design Patterns, didn't you :)) called EventBroker.
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