I\'m super excited about my program powering a little seven-segment display, but when I show it off to people not in the field, they always say \"well what can you do with it?\"
First: They don't need to have volatile memory.
Indeed the big players (Xilinx, Altera) usually have their configuration on-chip in SRAM, so you need additional EEPROM/Flash/WhatEver(TM) to store it outside.
But there are others, e.g. Actel is one big player that come to mind, that has non-volatile configuration storage on their FPGAs (btw. this has also other advantages, as SRAM is usually not very radiation tolerant, and you have to require special measurements when you go into orbit).
There are two big things that justify FPGAS:
Price - They are not cheap. But sometimes you can't do something in software, and you need hardware for it. And when you are below a certain point in your required volume (e.g. because its just small series, or a prototype) an FPGA is MUCH cheaper than an ASIC. Also, while developing ASICs this allows - before a final state is reached - much higher turn-around times.
Reconfiguration - You can reconfigure your FPGA. That is something a processor or an ASIC can't do. There are some applications where you can use this: E.g. When you need the ability to fix something in the design, but you can't get physically to the device. Example for this: The mars orbiters/rovers used Xilinx FPGAs. When someone finds there a mistake (or wants to switch to a different coding for transmitting data or whatever), you can't replace the ship, as it is just not reachable. But with an FPGA you can just reconfigure and can apply your changes. Another scenario is, that you can have one single chip which is able to perform different accelerations, depending on the scenario. Imagine a smartphone, when telephoning the FPGA can be configured to make audio en-/decoding, when surfing it can work as a compression engine, when playing videos it can be configured as h264 decoder/accelerator. Another thing you could do is that you can match your hardware to your problem instance. E.g. Cisco uses many FPGAs in their hardware. You need the hardware to perform switching/routing/packet inspection with the required speed, and you can generate from actual setting matching engines directly into hardware.
Another thing which might come up soon (I know some car manufacturer thought about it), is for devices which include a lot of different electronics and have a big supply chain. It's more or less a combination of price and reconfiguration. It's more expensive to have 10 ASICs than 10 FPGAs - where both perform the same task, but it's cheaper to have 10 FPGAs with just one supplier and the need to hold just 1 type of chip at service and supply than to have 10 suppliers with the necessity to hold and manage 10 different chips in supply and service.