I think Joe's answer is really really nice, but for a diversity of perspectives, here is another way to think about "why care about the hom functor"?
Suppose you are given a category $C$ and an object $c\in C$. You are not told what $C$ is, e.g., we do not know if $C$ is a concrete or abstract category. Nor do we know what $c$ is. All we know is the fact that $C$ is a category and $c\in C$. Suppose someone asks you if you can "pick $c$ out of a crowd", i.e., if you have enough information to identify $c$. It seems like we are stuck here. We know nothing about $c$, nor the category $C$ it lives in.
But, wait! We know something about $C$. Its a category! So, it has to have morphisms. So, by definition, for any other object $x\in C$, we have a set $C(x,c)$ of morphims into $c$. We can in fact do this for every object in $C$. So this defines a map $ob(C)\to Set$ sending $x\mapsto C(x,c)$.
Now, we still don't know much about $C$ or $c$. We don't really know much about the morphisms of $C$, if the are functions or what. But, we do know something about them. They compose! So given any $f\in C(x,c)$ and any $h:y\to x$, we have to have $fh: y \to c$. Hey, this mean we have a map $h^*: C(x,c)\to C(y,c)$! So, we can extend our $ob(C)\to Set$ to a functor $C^{op}\to Set$ by sending any $(f: x\to y)\mapsto f^*:C(y,c)\to C(x,c)$. Thus, we have arrived out our functor $C(-,c)$.
You may be thinking that this does not tell us much about $C$ or $c$. In some sense this is true; we still do not know if $C$ is concrete or abstract or how $c$ was constructed. But, it turns out that we now have all the information we need to "pick $c$ out of a crowd". Hows that? Invoking the yoneda lemma, $C(-,c)$ characterizes $c$ up to isomorphism. That is, if there is some $C(-,x)\cong C(-,c)$, then $x\cong c$. This may not seem like much at first. How important this was did not dawn on me for quite sometime, and I am still appreciating it more each day, but this powerful.
We know nothing about what $C$ is. It could be $Grp$, $Top$, or some weird and abstract category. Nor do we know a lick about $c\in C$. Yet, the structure $C$ has from merely satisfying the definition of a category (which is not a whole lot!) allows us to cook up $C(-,c)$. And this turns out to be enough to essentially define $c$! So maybe we are given another more familiar category $Grp$ and a way to map $F:Grp \to C$. We now have a way (in some sense) to determine if $F(G)\cong c$, for some $G\in Grp$. This in turn gives us (maybe?) enough information to determine if $Grp\simeq C$.
One thing representable functors make me appreciate is how powerful the seemingly simple axioms of category theory are!