In regards to Alexa ranking, it can be useful to see if a site has "decent" traffic, but overall I have found it not to add much value. It can be easily manipulated both intentionally and non-intentionally.
For example when I started using Firefox on all my computers versus IE, I stopped using the Alexa toolbar. The Alexa ranking of PAW went up quite a bit, while the actual raw traffic to the site also increased. This was because I visit PAW probably more per day than anyone else. And now none of my visits are being monitored anymore by Alexa.
This just goes to show how easily it can be manipulated even by just one person who uses the Alexa toolbar.
I would say for the average webmaster, Alexa is nothing more than an "entertainment tool"
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