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for collaboration through internet, especially if you want to allow people without AgileTrack client to access it. actually, if access is open to public you wouldn't want to allow users access DB directly.
In a single user environment there aren't many reasons to use the server.
In general, like slava said, database security and Internet accessibility are currently the main reasons.
The AgileTrack server also provides JSON-RPC and XML-RPC access interfaces that can potentially be used as integration points with other systems. Currently they aren't documented, but that will change as the AgileTrack documentation is completed.
In some cases, the server can provide better performance than a direct connection to a remote database. This assumes the server has a low latency connection to the database, but the remote clients do not. The JSON-RPC and XML-RPC interfaces are higher level and require fewer round-trips to interact with the database than with a direct connection. However, in most LAN environments, there wouldn't be any noticeable performance difference.
In the future, there will be a web interface that is distributed with the server, but that is still months away.