Well, the ITER project isn't the first fusion reactor- there are many around the world. However, the ITER project will be the biggest to date, and is designed as an experiment to learn how large fusion reactors behave. The key point is that current reactors are only able to run for a few seconds at a time. The ITER reactor is designed to run for up to 10 minutes. See
here for more information.
By 2020, the results should be available, and it may then be possible to design a fusion reactor which is capable of producing electrical energy. This prototype 'DEMO' reactor is expected to be built around about 2030.
The ITER project itself is enormously expensive - estimated to be around $10 billion - and it will not produce any energy. All it will produce is scientific data. It will also require development of new technologies (new materials, new construction technologies, advanced magnets, etc.), and just like the US space program, these spin-off technologies may be highly valuable in their own right. That several countries were desperate to have the reactor built on their soil, indicates just how much value they put on building and developing the technology - as well as providing a lot of very skilled jobs.
As for the reason for fusion power, proponents have a list of major advantages:
Fusion fuel (deuterium and lithium) is 'hyperabundant' - The reserves are so large that it will be impossible for humanity ever to deplete them.
Fusion produces less radioactive waste than fission - and the radioactivity is shorter lived (half life 30-40 years, instead of 10,000 years)
No weapons proliferation issues - dueterium and lithium are of no weapons value on their own. Refining of uranium and plutonium is the fundamental technology that enables fission weapons, but is also the same technology needed for fission power.
Intrinsically safe - fission reactors are 'critical'. There is more fuel in the reactor than is needed to keep the reaction going. Inhibitors are used to prevent the reaction from going out of control - bad things happen if something goes wrong (e.g. Chornobyl). In fusion, there is a lower concentration of fuel in the reactor than needed - the reaction relies on the constant input of energy with a laser or ion beam. Stop the energy injector and the reaction instantly stops.