Would be good for developers who need to port something to Linux but don't want to go through the hassle of setting up a dedicated instance themselves .. build-servers that need a full Linux setup, etc.
Might be good for folks who have very slow computers, or non-usable machines (iPads/tablets/phones/etc.) who nevertheless still need access to a Linux environment for school or work, or even just for the fun of learning Linux for the first time without much hassle.
Its certainly easier to use/setup an instance than some of the other options out there, although things seem to be pretty competitive in this space .. so who knows how long icebergs.io is going to be around.
I've bought a basic plan, anyway .. good for me to have my co-developers using this to build our project code without requiring a big fuss with setting up a PC/VM-instance/whatever...
In short: it can be used to do whatever you might like to do with a Linux workstation. So: quite powerful, then ..
Maybe your machine isn't good enough for the VM? Lots of folks have low-budget, slow laptops that could still nevertheless benefit from having access to a decent Linux workstation environment.