One of the main uses of infinite symmetric products is the Dold-Thom theorem. It states that the reduced homology groups coincide with the homotopy groups of the infinite symmetric product of a connected CW complex. This allows one to reformulate homology only using homotopy which can be very helpful in algebraic geometry. It also means that the functor SP maps Moore spaces M(G, n) to Eilenberg-MacLane spaces K(G, n). Therefore, it yields a natural way to construct the latter spaces given the proper Moore spaces.
