The question is in the title. What is WD-40 even good for? I know the standard answer their marketing team has drilled into people is "everything".
But seriously. I've found it to be pretty bad at everything. Its not a good rust penetrant. I'd never use it to lubricate anything. Its a pretty lousy anti-corrosion coating.
For me at least, I don't think it even makes the "better than nothing" or the "deserted island and you only get to take one can of something with you" cut offs.
I think I know what OP is asking more or less.
WD40 is marketed as a miracle/cure-all/1-stop/does-everything in a can, and although it
can do many things. It does
nothing exceedingly well.
If you need a
penetrating oil, products engineered to penetrate rust, and only penetrate rust (Kroil, AeroKroil, etc) will outperform WD40.
If you need an oil based solvent to
clean oily stuff, there are much more effective options out there (Brakleen, Ether, LocTite SF 7611, etc).
If you need a product that prevents corrosion, there are dozens of options that outperform WD40 and with most it isn't even a contest (Cosmoline, LPS 3, etc)
I had the same thought the other day when I had to use a hacksaw on something - "There isn't anything a hacksaw can do that a different tool can't do better."
WD40 is the Leatherman/multitool of the canned world. It does several things, but does none of them well.
The WD does stand for water displacer as previous posts mention.