South helps to keep your databases in sync with your models. Django's "syncdb" function will only create tables, not modify. Rather than modifying the tables by hand, south takes a snapshot of the models and creates/runs "migration" code to get the database up to (or back to) this model snapshot.
This is especially helpful when you're working on a team where each dev has a VM with their own DB or if you're moving from a QA database to a Production database.