The key difference between external and managed table in Hive is that data in the external table is not managed by Hive.
When you create external table you define HDFS directory for that table and Hive is simply "looking" in it and can get data from it but Hive can't delete or change data in that folder. When you drop external table Hive only deletes metadata from its metastore and data in HDFS remains unchanged.
Managed table basically is a directory in HDFS and it's created and managed by Hive. Even more - all operations for removing/changing partitions/raw data/table in that table MUST be done by Hive otherwise metadata in Hive metastore may become incorrect (e.g. you manually delete partition from HDFS but Hive metastore contains info that partition exists).
In Hadoop definative guide I think author meant that it is a common practice to write MR-job that produces some raw data and keeps it in some folder. Than you create Hive external table which will look into that folder. And than safelly run queries without the risk to drop table etc.
In other words - you can do MR job that produces some generic data and than use Hive external table as a source of data for insert into managed tables. It helps you to avoid creating boring similar MR jobs and delegate this task to Hive queries - you create query that takes data from external table, aggregates/processes it how you want and puts the result into managed tables.
Another goal of external table is to use as a source data from remote servers, e.g. in csv format.