Wetsuits are suppose to keep you warm in the ocean or cold water. They keep you warm by creating a thin layer of water between your skin and the wet suit. Your body heat warms up this thin layer of water keeping you warm.
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A - keeping you warm. They trap a thin layer of water between you and the wetsuit, which your body wams up. So, although they let a little water in, it's better than no wetsuit. Depending on water temp, you can wear thicker and thicker wetsuits. If it's really cold, you want to wear a dry suit - this keeps all water out and you can wear clothes underneath!
B - protection from the environment. Due to currents/surge, no matter how careful you are to avoid touching corals and underwater life, accidents happen and coral and rocks can be sharp and there's plenty down there than can sting/injur you.
Besides, they look sexy!