What is the purpose of the Version Control API module? We are relatively new to Drupal development and are investigating various tools that can assist us with some upcoming projects.

The Version Control API module seems interesting, especially since it's semi-official.  I think we have some confusion regarding it's actual purpose, however.

See the link here: http://drupal.org/project/versioncontrol

Assuming we get this configured properly with a git backend, how does this change our workflow while developing with Drupal?  Will resources that we add to the website (such as graphics and html) be added to git source control automatically?  Does this git source control replace the existing Drupal "revision" feature?

Any additional information or real-world examples of how to use this module would be appreciated.
Documentation, as Clive pointed out, provides good technical explanation. For those who need more "human-readable ones": Every time you download module from Drupal.org or any Drupal page, use issue queue or in any other way interacts with module or theme version, you are using Version Control API or other module with the same purpose.