Administrative segmentation by function, by server, by protocol, application is a good thing too. You can keep all the Macs on their own segment, or IPX, or Metaphor, or,or,or....
Segmentation to limit Internet access with a VLAN means you don't have to add another Access-List rule to your (Cisco)router or firewall.
Some of the subnetting stuff would work as well as VLANs, but administration of a jillion subnets can be a real headache, and it adds additional load to the router(s) (maintaining route tables, etc). Since most (not all) VLANs are gonna have their own IP subnet, it's not advisable to have a jillion VLANs either (for the same reason). As mentioned before, it's an available tool that, in many circumstances, offers options to improve the design of the network.
Xylan (now Alcatel) was up to placing a user on a VLAN according to their login...I don't know if they ever got it off the ground. They had, by far, the most complete set of rules for VLAN association...maybe they still do. There was a time, a few years ago, when there was a big drive to "flatten" networks and reduce or eliminate the use of routers, the concept of VLANs really grew up around that time.
Done well, in the design stage, VLANs can be a big help. Done poorly they can become a massive headache for Network Administrators and infrastructure upgrades.
FWIW
Scott