Rebinding is essential for recursion, which is a concept in mathematics. Given a fib(x) function defined in terms of itself, the when we express fib(10), the parameter x is simultaneously bound to a number of different arguments through the recursion. We just understand those to be different x's in different instances of the f scope.

Rebinding is also needed for simple composition of operations. Given some f(x), the formula f(3) + f(4) involves x being simultaneously bound to 3 and 4 in different instances of the scope inside f.