In case the title isn't self explanatory, this allows you to use IPsec with multiple subnets. The diagram below explains this.
Without another phase 2 entry, hosts
192.168.7.123 and
10.8.8.2 are unable to communicate with each other. Unless there was a way to tell t1n1wall to route traffic from 192.168.7.0/24 to 10.8.8.0/24 over the existing IPSec tunnel (which there isn't and static routes don't work).
Additionally, some have suggested to create a 3rd IPSec tunnel using the same keys and endpoints, but with different subnets. That doesn't work either. It results in only one of the two tunnels working.

The correct solution is the create a second phase 2 entry for the existing IPSec tunnel.