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Labels are one use case, but this functionality was about being able to move things around on any visualization. Christof did a good job of explaining other applications.
In order to communicate a result of a Spotfire analysis to colleagues it is a common practice to export the final visualizations to PowerPoint as editable image to make the Spotfire graphs fit for presentation. Many use cases i saw was editing the axis ticks and labels. Hiding unnecessary features of the graph or highlighting certain regions of the graph in the "background" of the visualization.