The point of DoF is to make it easier to focus on important elements on the screen. It's kinda silly in an RTS game (speaking as someone who implemented it in one), but in a first or third person over-the-shoulder game it tends to work pretty well. I find it's primarily used in cinematics in practice, for the same reason it's used in film (to direct focus).
Also,
aeonios's implementation is very simple and resource-cheap, which is why it's literally just "reduce image quality" rather than a full radial blur. Reducing the image quality causes the GPU to automatically do bilinear filtering, which is similar to (though less thorough and controlled than) what the full blur would do, and usually a full blur shader will use a few copies of the screen at various sizes to handle wider blur radii more efficiently.