This feature has replaced most of the old halogen and incandescent light fixtures, both in the water and around your swimming pool, for two reasons: First, they are much more energy-efficient, using only a tiny fraction of the electricity of the old-style lights. Second, they last significantly longer than simple incandescent bulbs.
An especially popular use of LED lights (sometimes using fiber optics also) is to incorporate the lights with your deck jets or water arches, thus creating the illusion of a stream of colored water. With most advanced lighting systems, the colors can be changed automatically, in an ongoing sequence, giving you an entertaining light show at night.