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Please see title for details.

It's pointless stuff.
It has no purpose.

It shows the others what good boys and girls we all are.

It also shows that people like animecello and were thumbing up his comments because they really like him.
Actually, that was a conspiracy. A conspiracy to show the flaws of the karma system.

Also, no one's karma can go down.

When a post has low karma, the post will be hidden. It's like when a comment on Digg gets buried.
Positive karma appears on your profile, but it's completely arbitrary, does nothing, and doesn't reflect much of anything about the user.