It is a beautiful utterly elegant hack used to save on wear on the disk. Scrambling/randomising data on MLC drives also improves reliabilty on smaller process sizes - see this paper and these two referenced patents (here and here, and encrypted data is essentially random (thanks to alex.forencich for digging that up in the comments). In a sense AES encryption works the same way as the LSFR used to randomise data on a non encrypted ssd, only faster, better and simpler.
This class of drive is known as self encrypting drives, and quite a few modern SSDs are built like this. Essentially, encryption is relatively 'cheap', and allows you to store data scrambled on a SSD (some drives do this without encryption to improve reliability anyway). If you need to format it? just make the data inaccessible until the space is needed by discarding the key. It's done at the firmware level, and is decrypted on the fly. This also helps save on wear since data is spread out in the process.
Unless you set an HDD security password in bios, or set some other type of supported security/encryption option, all this prevents someone from doing is desoldering your NAND chips and reading them elsewhere, or putting in a new controller and getting your data out - see this AnandTech review of the Intel 320. Of course, when your drive dies, and if it's the controller, that's exactly what a recovery service would end up doing. Unless they could somehow recover the encryption keys from where its stored, (firmware?) and transfer it, it's probably impossible.
In short, encryption increases the lifespan of your disk, and makes it 'faster' when deleting files.