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Cookies are also usefull for online ecommerce and personalizing web pages.
The actual Cookie is a very small text file and can be easily viewed by a text reader such as Notepad. A Cookie cannot be used to get data from your hard drive, get your email address or steal sensitive information about your person. Early implementations of Java and JavaScript could allow people to do this but for the most part these security leaks have been plugged. But Cookies can be used to track where you travel over a particular site, This site tracking can be easily done without using cookies as well, using cookies just makes the tracking data a little more consistent. Even though all this preference information is stored in the same file on your hard drive, individual cookies can only be accessed by the site that created them.