Its useful for increasing surface aggitation, and for increasing tank circulation... and some fish seem to enjoy playing in the bubbles created by a wand/stone/etc.
Is it needed in your average everyday tank? IMO, no. Filtration and water movement should create enough surface aggitation to facilitate decent gas exchange between the water and far (if not, then reposition the output of your filter, powerhead, etc.). I personally find bubbles created by wands/stones/etc. to be a bit tacky myself.
HTH
-Richer