Why Use Isolated Power Supplies
With most hobby electronics, all your system parts tend to operate from a common ground. This makes things easy to understand, as you just measure what a device is 'doing' with respect to ground, and you can make things happen in your design.
For example, you can decide that 5V above ground is logic high, and if your micro sees that level on a pin ou can turn on a light. Or if it's an analogue value of 3.2 volts you might think your room is warm enough and decide to turn off your heater.
Sometimes you might here this referred to as an 'absolute value' above ground.
Makes sense.
But sometimes, you don't want to know what the difference is between two points that are different to ground.
Huh?