1. Engineers A & B are working on a medium-sized story that's not really done yet, but is in master anyway 2. Somebody discovers a small but critical bug in production 3. Engineer C can write a bugfix very soon, but can't deploy it to production because the other story isn't done yet.
But if your team never ends up saying "I'd deploy that but master isn't clean right now due to different changes", you probably just don't need to branch that much. Maybe your team is smallish or maybe you're capable of always breaking up work into really small increments. It really depends on everybody's situation.
Github does something sort of like this internally: http://scottchacon.com/2011/08/31/github-flow.html
Branching is more overhead in some circumstances but I've also found they can make things much easier. But I also wish that more people were comparing strategies and trade-offs because this stuff gets subtle and there are really lots of ways to do it.