Firstly, shouldn't this be on SuperUser? It's not really about programming...
Anyways, AFAIK Zip-Bombs are mainly used to mess-up anti-virus software. Since the program will try to unzip everything to make sure that there's no malware/viruses anywhere inside. They will spend forever on that one archive, maybe even crashing, allowing other viruses in.
Here I'm speculating, but I also think that there are some zip-bombs that will decompress everything, messing up the whole computer as opposed to one program. However, I'm only guessing.
Source for the first answer:
- http://en.wikipedia.org/wiki/Zip_bomb
- Knowledge accumulated by browsing countless other websites