Karoly Negyesi (chx) mentioned in IRC "one thing people (like rszrama) is using entities is basically multigroup functionality." "Say, you have something like a line item in an invoice, needs a lot of fields, that becomes an entity. And it's not a node because a node has stuff like promote and sticky which does not apply."
Fields
borrowing from Barry Jaspan, http://www.archive.org/details/DrupalconDC2009-FieldAPIDrupal7