How/why would I use iTunes app on iPhone?

I enjoy using my iPod app on my iPhone, and regularly sync it with iTunes on my MacBook. Works great.
What confuses me is the iTunes icon on the home screen of my iPhone. What's it for? When would I use it? How does it relate to the setup of iTunes on my Mac?
Thanks.

What's it for?
To buy music, videos & ringtones from the iTunes Store directly on your phone.
When would I use it?
When you want to buy music, videos & ringtones directly on your phone, instead of buying on your computer and then syncing them to your phone.
How does it relate to the setup of iTunes on my Mac?
It doesn't. It's an iPhone version of the iTunes Store section of the iTunes application on your computer.
Have you actually tried loading it and exploring it?
All this is explained in the manual:
http://manuals.info.apple.com/enUS/iPhone_UserGuide.pdf
Chapter 20

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