The VATS allows for more accuracy when using any type of weapon. Activating the VATS will bring up an interface, showing the potential targets in the area and their most vulnerable parts. The VATS will also show you the probability that you will hit the particular body part of the target. You can choose to shoot to kill, a headshot, which is less accurate or you can aim to maim by shooting your target in the leg. This will bring up an interface that looks like this:
The VATS also makes Fallout 3 more fun for the teenaged boy in all of us, by showing a slow motion animation of the bullet hitting the target, which may result in something like this:
The VATS is also practical from a game design perspective because of how having to worry less about shooting accuracy will allow gamers to focus more on the more immersive parts of gameplay, such as map exploration, engaging with NPCs and item collecting. Simplifying the most fun part of the game makes the challenges that the other aspects bring more rewarding.