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Q: What benefits does 'face' have?
No, seriously!
In a discussion about the substance vs appearance thread, I just asked this - does the all important appearance (eka 'face'), have any actual benefit or advantage? And, I don't mean in a snarky way, nor in a 'it covers up incompetence' etc sort of way...
EDIT: given a couple of replies, I thought I ought to clarify. The concept of 'face' is not unique to China. Nor is it a new thing. It once meant that how a person acted, and what a person said, ought to be of the highest quality. It should have meant honour, courage, respect, honesty, fairness, loyalty. Do not be rude or insulting to someone (not even your enemy), Show gracious hospitality to visitors - friend and stranger alike. Do not do (or say) anything which would tarnish your reputation.
As many peoples throughout Europe would basically have it - don't do anything that would make you wish to hide your face in shame.
The modern interpretation of that, unfortunately, seems to be - don't get caught.
Having "face" (two or three of them) means being able to keep your nose in the air and your mouth around every a55hole.
Yes, if nobody had face, it would be difficult to know who is who. 
"Face" is a childish myth that is for some reason, coveted by the Chinese masses. It has never had a tangible benefit as far as I am concerned.
Rather than benefits I see it as having serious drawbacks. It just gives an excuse to lie, cheat, arse-lick and act like immature school kids by saying "I've got the most expensive one I'm better than you". It just helps turn most people into complete dickheads.
Face is probably a tool, a poor one at that, for combating poor self esteem or other personality issues.
(similar to a lady going shoe shopping after a breakup, or a man going drinking after shoe shopping with his woman)
@The Edit: Maybe people confuse face with guanxi, an equally useless concept.
Heard of the term 6 faces and 3 hearts? Well, the locals all have it. Next time when you see a local, observe how he changes his face with different people he talks to.
The 6 faces you show depends who you are with at a given time, you show what's required.
The 3 hearts are more complex:
1 heart you show to everyone around you.
1 heart you show to those close to you.
The final one only you know yourself.
I am a foreigner in China. I have no face. I just do what I think is right. When people I have known for three years just call me "lao wai" when they all know my name, what does that tell you? They call each other by their name and title. When you have Western Phds in China and they just call them Dr. Joe, their title with their first name, what does that tell you?
Chinese people are on their own program. I am tired of fighting against 5,000 years of civilization. I do not even bother with the concept of "face, guangxi" and the like. I don't count and I don't care to be counted. Then I again I am glad I do not have to bother with this crap anyway. When I get invited to go drinking I say no.
cooter:
This....specifically "When people I have known for three years just call me "lao wai" when they all know my name, what does that tell you?" especially while you are right there when they call you laowai to others who also know your name.
Interesting history about the origins of the term 'face' in English. It used to mean civilized, gentlemanly behaviour, but now it has been taken over by (mostly) Asians with their smallmindedness, illogical behaviour and prideful egos.
I have something much better than contemporary 'face' - I have the old-fashioned 'face'. I call it 'dignity'; it makes sense, serves me well in life, but isn't an easy excuse to shove in someone's 'face' to win a discussion.
Almost all real "face" is fake - a matter of convenience. Same for guan-xi. If it is convenient it will be used, and if not convenient - ignored. I can honestly say that I have not seen more selfish people than in China, and not all of them are Chinese.
It's good for pushers of so-called luxury commodities which no sensible person living on 4000rmb per month would even consider purchasing in a rational universe.
RE: Louis on 6 faces 3 hearts:
Haven't heard of that, but I have heard of "3 faces, 2 knives", or the more common one, "2 faces, No heart"!
