You gain some options: to control what apps run, make thorough backups, replace your firmware (ROM or radio), move apps more completely to SD. Think of it as running as an administrator rather than a limited user (though the analogy is far from exact). See the first couple of questions of the FAQ.
You lose the ability to accept over the air OS updates (even if it says you can, don't!), and you may have problems if you need to return the phone under warranty if you can't unroot first.
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