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Why is Milnor K-theory not ad hoc?

When Milnor introduced in "Algebraic K-Theory and Quadratic Forms" the Milnor K-groups he said that his definition is motivated by Matsumoto's presentation of algebraic K_2(k) for a field k but is in the end purely ad hoc for n \geq 3. My questions are:

  1. What exactly could Milnor prove with these K-groups? What was his motivation except for Matsumoto's theorem?
  2. Why did this ad hoc definition become so important? Why is it so natural?