Generally, profiles are useful for anything where you would want to easily switch between a group of settings - different SSH connections is one case where you might want this, but there are many others...
A dedicated hotkey window is a window that is associated with a profile and has a hotkey attached to it. By pressing the hotkey, the window opens or closes [...] In its simplest form, it's a system-wide terminal window that you can open with a hotkey.
(emphasis mine)
You can create multiple Hotkey Window profiles, each with their own hotkey to trigger them, as well as their own preferences (where they should appear on the screen, colours, fonts, etc).
There is an Automatic Profile Switching feature that automatically switches the profile of the current window in response to specified rules. This means that you could use different profiles as a way to change the colour/font/other visual settings of your terminal when running certain jobs, in certain directories, etc.
Under Profiles > [profile name] > General > Command
in the iTerm2 settings, it's possible to send text at the beginning of a session in a specific profile. This can be used for a variety of things, like automatically running a command when the profile is opened, or sourcing specific environment variables for a certain task. Combined with the Hotkey Window feature, this can be very powerful.