There are many benefits to it. Not only do they work better for SEO, but they are often times hackable for your end-users.
http://stackoverflow.com/questions/tagged/php
That tells me pretty straight forward that I'm going to find questions tagged as "PHP." Without knowing any special rules, I could guess how to find the jQuery questions.
You will run into a limit on the amount of space you can squeeze into a url, but limit the urls to core-terms (like titles to an article, etc) and you'll be fine.
One suggestion is to use these types of urls, but have a fall-back plan. For instance, the url to this question is:
http://stackoverflow.com/questions/1347835/is-having-a-descriptive-url-needed-to-be-a-web-2-0-website/
The first parameter is 1347835, which is the question id. The second parameter is the question title. The title here is completely optional. It's not needed to access this page, but when you use it in links it increases the SEO for this page.
If you were to require the title be exact, that may cause more problems than you want. Make the SEO-content like this optional for loading the content itself. SO only requires the question-id, as I stated before.