They eliminate the c-clips. Ok, i wont be too smart. Disclaimer: If you have a ford 8 or 9 in rear end, you don't have c-clips In a c-clip rearends, the axles are held in by c-clips, and c-clip eliminators take over this function by acting like most standard removable carrier rearends (how many times can c-clip be used in a sentance...). They hold in the axle at the outer bearing. That way, when you snap an axle in half, your wheel won't fall off.
And the eliminators are not street freindly, they don't handle cornering too well, or so I've heard. It's better in my opinion to bite the bullet and weld on 9" style bearing housings and use 9" style axles.