The following would apply if you wanted to generate nodes according to a specific taxonomy term, but you didn't want to create a different view for each case.
For instance, we have a market place and in the preface region of our theme, we've setup a 3x3 panel, and in each of the 9 dials we want to demonstrate the latest product from a specific category.
We would create a new node type(Product) for our market products, and a taxonomy vocabulary(Product Categories), which we would then asign to the aforementioned node type. Finally, we would create a view with the following options:
