These associative algebras provide us simultaneously with a purely algebraic analog of $C*$$C^*$-algebras of graph and a generalization of the Leavitt algebras (some associative algebras which do not satisfy the IBN property).
The theory of LPAs is auseful, and even beautiful one, because it allows us to identify ring-theoretic properties of associative algebras from the graph-theoretic properties of their associated graphs in a visual and straightforward way.:
They provide simple, visually attractive representations of well-known algebras.
They allow us to look at their algebraic properties by means of the combinatorial properties of their associated graphs. This happens to equip us with some rather powerful tools.
Conversely, they also enable "algebraic engineering", since they give us a straightforward, visual way to construct new algebras, customized with any algebraic or ring-theoretic properties we may desire. For example, we can show an algebra generated by five elements such that it is exchange but not purely innitely simple, by constructing a particular (small) graph with some (easy) graph-theoretic features.
Some references:
G. Abrams, G. Aranda Pino. "The Leavitt path algebra of a graph", J. Algebra 293 (2), 319-334 (2005). (Available at http://agt.cie.uma.es/~gonzalo/papers/AA1_Web.pdf).
P. Ara, M.A. Moreno, E. Pardo. "Nonstable K-Theory for graph algebras", Algebra Repr. Th. DOI 10.1007/s10468-006-9044-z (electronic). (Available at http://www.springerlink.com/content/pu701474q5300m63/).
G. Abrams, G. Aranda Pino, F. Perera, M. Siles Molina. "Chain conditions for Leavitt path algebras". (Available at http://agt.cie.uma.es/~gonzalo/papers/AAPS1_Web.pdf).
K.R. Goodearl. "Leavitt path algebras and direct limits", Contemp. Math. 480 (2009), 165-187.
G. Abrams, G. Aranda Pino. "The Leavitt path algebra of a graph", J. Algebra 293 (2), 319-334 (2005). (Available at http://agt.cie.uma.es/~gonzalo/papers/AA1_Web.pdf).
P. Ara, M.A. Moreno, E. Pardo. "Nonstable K-Theory for graph algebras", Algebra Repr. Th. DOI 10.1007/s10468-006-9044-z (electronic). (Available at http://www.springerlink.com/content/pu701474q5300m63/).
G. Abrams, G. Aranda Pino, F. Perera, M. Siles Molina. "Chain conditions for Leavitt path algebras". (Available at http://agt.cie.uma.es/~gonzalo/papers/AAPS1_Web.pdf).
K.R. Goodearl. "Leavitt path algebras and direct limits", Contemp. Math. 480 (2009), 165-187.