Linux From Scratch 6.0 Released
Bubblehead writes "The Linux From Scratch community is pleased to announce the release of
LFS 6.0. This major revision of the book includes a number of major
package upgrades, including GCC 3.4.x, Linux kernel 2.6.8.1, and the
Udev software package, allowing for dynamic creation of device nodes.
The text has also been vastly re-written for improved readability."
I guess there could be multiple possible reasons. For example, it's good for learning (some parts) of how does your system work, or it could be good for "power users", or as you mentioned, for embedded systems or you could be a professional and just know how to design a good system. I'm sure there are much more reasons why someone would use systems like LFS.
It takes a man to suffer ignorance and smile
Be yourself no matter what they say
The reason for LFs's existance is for learning. People who are wanting to learn the internal workings of a linux system would be well served by this distro/book. Its an excellent way to see how every aspect of a linux system runs and is built. You build every stage of it, and its fun to boot.