It's an assessment of the quality of the positions a team is shooting from. In one game it's a sideshow, over a longer period it has value.
Chris Wood massively outperformed his xG last season. He's a good finisher, who had the season of his life. xG confirms what we all could say anyway. But if someone we weren't watching every week had a similar season, it would indicate they were worth having a good look at.