I eschew this option for TV Shows because I want to watch episodes in sequence, not just the last ones added. The same goes for a large number of episodes of a single podcast. However, I’ve found a use for this option that makes sense.
I’ve got probably 10 movies that I haven’t watched. Most are old rips that I just haven’t been in the mood to watch yet. The more interesting ones happen to be the latest added, so for movies on my Apple TV, I’ve reversed my normal operation and now sync the last 3 added (or 3 “most recently unplayed”) movies. This is much better. Once I’ve run through them, the older ones will come back until I finally relent and watch them too.
I didn’t think I’d ever find a use for this option. It’s nice to see that it is workable in some situations.