I think of the prvate key as a password. On systems like Mastodon you trust the server admin to store your password.
In Nostr you don't need to trust the admin. You can to a separation of powers. A plugin holds the password and the admin never knows it.
Is it worth using? I like the fact that there is no central admin dictating how an instance is run. There is also a lot of potential for it to become a blogging platform and Telegram alternative.