What is an internal USB port hub used for?

Solution
Solution
Internal hubs are not necessary, but can be useful for hiding wireless dongles (wifi, mouse/keyboard) inside the case. If you're going to use it for this purpose, keep in mind that you might not get the full advertised range.
 
They were popular for a while when Intel and Microsoft were pushing using a USB flash drive as a cache for the HDD. You could leave it plugged in all the time without any risk of accidentally removing it. But the SSDs came way down in price.

Nowadays, the main use is probably for security dongles - a dongle that's needed for a certain program to run or function. You want them plugged into the computer all the time, and you don't want someone to just pull it out and take it. So put it inside the case, and lock the case shut.