Allow for automation of parameter creation by selecting parameters of nested families, which will then be recreated in the parent family. This way users won't have to create parameters over and over. The parent family will simply link selected child's parameters and recreate them.
To illustrate: a "Profile Family" with parameter "Extrusion Width" is inserted in a family, say "Extrusion Family", where the Profile Family is being used to drive an extrusion. If the Extrusion Width parameter would selected in a dialogue box, it's exact input (type, category, units, etc. ) will be referenced in the Extrusion Family. When the Profile Family would be edited and as a result the Extrusion Width parameter were to be changed, the Extrusion Family would reference the new parameter and therefore be 'updated'.
Note that it's not about the practicality of this example, but just to get the point across.