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Answer Posted / joel kern
All the above answer are correct to the true function of a transformer.
However, the main reason to "why" we use transformers is so that we can keep those big, smelly, dirty, ugly power plants as far away from our homes and workplaces (unless you work at a power plant) as possible. Without transformers, you would have to generate all the power you need at the source.
This Nissan Leaf commercial, though exaggerated, does a pretty good depiction of the what world would be like w/o transformers:
http://www.youtube.com/watch?v=N7K_hWuPwv0
Add to the gas any fossil fuel or renewable energy and you will get the picture. Not that all power plants are ugly or dirty, but transformers (no matter the size) allow us to generate power in one place and consume it in another.
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