Installing an Operating System on Your USB
1. Portability - Not like a CD USB a flash drive is really small and you have high capacity so you will be able to have your files as well. Also, it is more reliable.
2. In a situation where your current OS is crashed you can retrieve the important files to your USB or another external hard drive.
3. Of course your can access any computer without cracking user names or passwords. But do not do that as it is not ethical. Other hand it is impossible to stop your data been exposed or destroyed if you give access to hardware.
4. Recover Lost or forgotten passwords for your current OS. This is a quite interesting hack and can do many experiments based on it.