Just can't figure out the situation when this clever set of rules can be helpful. They break the simplicity of the box model and provide infinite source of troubles when you combine different pieces of layout together. So what is the reason?
Rules for the reference.
Update: Rules are quite logical for sibling elements, but why margins should propagate to parent elements up to the tree? What kind of problems that solves?
For example:
<div style="margin: 20px; background-color: red;">
<div style="margin: 20px;">
<p style="margin: 100px;">red</p>
</div>
</div>
<div style="margin: 20px; background-color: blue;">blue</div>
Top level divs are spaced from each other by 100px.