This should be used in all production deployments involving NSX - at a minimum, it prevents NSX from distributing routes that it shouldn't. NSX is a participating member of a larger network and should abide by the "do no harm" standards that other networking gear does.
For example, if a user creates a new segment with an IPv4 address of 10.0.0.1/24 and that prefix is used elsewhere, NSX should either intercept the request (this takes a lot of coding or "contain the damage" by preventing a bogus prefix from propagating to the wider network.
The same can be done inbound if there's a complex routing configuration, but most aren't. At a minimum, I'd recommend having some kind of "sanity check" implemented here to make NSX more reliable.
What I describe above is basically a minimum. This feature is incredibly powerful when trying to manipulate traffic flow, and is worth learning overall.
A fun fact about NSX Edges - they use FRRouting, which requires a prefix-list or route-map to function - so NSX creates an "allow all" entry for you.