Gutenberg withInstanceId. When to use it?

The WordPress block API for Gutenberg has a withInstanceId package.

They say,

Some components need to generate a unique id for each instance. This
could serve as suffixes to element ID’s for example. Wrapping a
component with withInstanceId provides a unique instanceId to serve
this purpose.

and show an example:

/**
 * WordPress dependencies
 */
import { withInstanceId } from '@wordpress/compose';

function MyCustomElement( { instanceId } ) {
    return (
        <div id={ `my-custom-element-${ instanceId }` }>
            content
        </div>
    );
}

export default withInstanceId( MyCustomElement );

It seems like it is just being used for html ids? As to not have duplicate id names? Is there any other usage for it? If i just export my component using export default withInstanceId( MyCustomElement ) will the entire component have a unique id?

export function EditBlock({clientId, setAttributes} ) {
  
  // save clientId in attributes to make it available in Save
  return (
        <div id={ `my-custom-element-${ clientId }` }>
            content
        </div>
    ); 
}