"...in some LV examples I see wait used explicitly in
while loops with a comment that "we are using wait so other code can run""
Wait will give time for other things to execute yes. The reason why a wait often is used in loops is that if the code within the loop does not contain anything that by itself allows the CPU to do other stuff in-between the loop will run as fast as possible, i.e. using 100% of the CPU. If you are developing on Win9X you might never see that effect (it will use a lot of CPY, but normally not 100%), however on NT/200X such behaviour is allowed and must be taken into account (and should thus be on Win 9X as well if there is a chance the software might be used on NT/200X in the future...).