That is a very good question.
Strings can be used in many ways. One use is to, as you mentioned, store Alpha values. Another function of strings is the ability to store expressions. So if you had a string containing "1+2", Str1 would return 1+2 while expr(Str1) returns 3. This allows for very complex equations, if you know how to work the commands correctly.
By using the characteristics of adding strings, we can turn data in the form:
Into a list by putting a bracket out front.
This type of input allows for any amount of data entries to be input, without having the calculator ask for how many there are, and then ask each individually.
Size is also a big factor, along with speed. The use of strings allows for a great reduction in size and an increase in speed. Rather than having to look through each element of a list, the calculator can just recall the string. Also, you never have to worry about existing variables in the list of the domain is larger than what you need, it will always contain just the data you enter. A smaller program also means more ram, which means more processing speed. Some of the best codes I have seen were written with the use of strings.
If you have anymore questions, feel free to ask! Also, you may want to consider becoming a member! It will allow others to see if you offer valuable advice, and allows you to use code blocks, and post links after a little while! Hope this helps!