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Bookmarks are, ideally, user-defined navigation points to make it easier to jump around to places of interest (and not just TOC locations). The 'analog' version of this is dog-earing a page or placing colored tabs in a book to identify points of interest.
Finally with the PW2 and 3rd generation Fire tablets, they have their own navigation list. Before they were mixed in with highlights and notes which rendered them somewhat less usable (though you could filter the Notes and Marks list to show just bookmarks).
For titles that support Whispersync for voice, bookmarks can also establish navigation points in the audiobook to make it easier to locate passages things there, since these get synched along with reading position.
They're especially useful for reference books.
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