It allows you to add entries to the list after the list is bound to the datagridview, and have them show up in the datagridview. Try changing the BindingList in the sample to a regular list- you’ll notice that only the first entry (John Doe) shows up in the datagridview. This is because it is the only thing that was added to the list before we bound it to the datagridview (dataGridView1.DataSource = PeopleList; is when we bound it). Because the rest of the entries were added after it was bound, they don’t appear in the datagridview.
Also if you use a regular list, the modal panel which lets you add a new person to the list doesn’t work. Because adding items to the list doesn’t update the datagridview.