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How to understand the "New Item" icon at the bottom of the Project window

I'm trying to understand that small "New Item" box at the bottom of the project window better. I'm aware that when I bring video clips into my project, if I drag them to this box, PPCS5 will add them to the timeline. I partially understand the positive reasons for doing so, primarily that PPCS5 will correctly identify the type of video being brought into the project. I know that if I select all my clips and drag them to the new item box, that all my clips will be added to the timeline at the same time and all together on the timeline. There are many things I don't understand about it. If I add my clips one by one using the "New Item" icon, they will show up as separate sequences on the timeline. If you try to add another clip at a later time, can that clip not be added using the "New Item" box?  One other question is what would be the advantage in putting clips on the timeline as separate sequences? And one further question is do you drag other items to this box besides video clips? Like music, and still images?


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