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The download option allows you to read the book on any device that supports Adobe's ADEPT encryption scheme. You "authorise" your device over the Internet with your Adobe account, and as long as you redeem the ACSM file with the same Adobe account, you can read the resulting EPUB file on that device. Kobo uses Adobe's RMSDK engine to read EPUB files, and since it's Adobe's engine, it supports Adobe's encryption scheme.
The main use for ACSM files around here, though, is that it's the easiest way to decrypt your Kobo purchases, since Calibre has an ACSM input plugin that allows you to redeem the ACSM file and decrypt the resulting EPUB in a single step. This means you don't need ADE or an Adobe account at all.
AFAIK the only benefit to using Kobo Desktop is that it allows bulk downloads, whereas you can only download ACSM files from the Kobo website one by one. As long as you keep up with your purchases and decrypt them in a timely manner, you never need to mess with KDA at all.
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