What is the real meaning of hw.usb.template=3 ?

Unfortunately, usb_template(4) fails to explain the real purpose of usb.template due to the lack of logical flow, example or acting objects in description. I would like to propose a new description, once I'm able to understand the old one.

1. Does hw.usb.template actually create a USB gadget, such as serial or ethernet? How does it determine which physical interface it should be deployed to?
2. If template creates some objects, are these objects active upon boot, or are they reserved until a user-developed device driver leverages them?
3. How the template is controlled upon runtime? What should be added to make template a complete solution?
 
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