Please explain impersonation for non-technical users.Then please explain it in the context of ASP.NET. Is Impersonation good or evil? Do we use it in the case of Forms-based Authentication?
You should check out Keith Brown's description of impersonation. It is really a Windows concept.
When you have an application using forms authentication (FA) the IIS process is running under the credentials of a specific user setup in IIS.
Example: If you have a user called Bob logged on using FA and IIS setup to run as Network Service. Bob accesses a page which makes a web service call to another computer, the other computer will see the IIS user and not Bob. You can use impersonation to allow Bob to access the web service as a real Windows user and not Network Service.
Impersonation is not evil but it can be misused. You really need to understand the impact on your overall security model. It is also something that creates a lot of work for a developer to debug. This is especially the case if you do not have admin rights to the resource (eg. web service) you are trying to access.