Many people feel that having a formal way to address people is useful. It allows you to express very quickly how close you want to have them to you. A stranger you don't like? Formal. A stranger who seems to be your own age and from similar circumstances? Try using non-formal and see how they react. The most beautiful form of this is 'Sie Arschloch', I think. At the same time kind of polite and a rude insult.
> Many people feel that the having a formal way to address people is useful. It allows you to express very quickly how close you want to have them to you. A stranger you don't like? Formal. A stranger who seems to be your own age and from similar circumstances? Try using non-formal and see how they react.
Or when a couple came apart (in conflict). He started to formulate the letters/emails in a overly formal addressing - she was really furious about that, because this sent a clear message to her.
My native language has that distinction and I have never found it useful - it's nuisance at best. I'm thankful it's something I don't have to think about when speaking in English.