What is the purpose of a waterfall?

There is no "purpose" to a waterfall. It's just a place where the landscape happens to change elevation where water is flowing through it. Unless you've left out some context (for instance, in designing decorative fish ponds or some such), your question makes little sense.
to experience the nature's beauty!
to add beauty to nature.
It gives us something to ride over in a barrell ☺

To conceal sexy deeds.
it is newtons phenomenon..
depends on where the water fall is .. in this case "During nine years of construction -- the castle eventually cost between $1.5 and $2 million -- Johnson also incorporated a few unique design features. For instance, there is a waterfall in the front room. In addition to its aesthetic qualities, the purpose of the waterfall is to help cool the room -- remember, this home was built before air-conditioning."
Well you can use it to make energy to supply to people and you also have them just to look at
great place to have a shower
we can generate electricity with them
or water wheels to grind grains
and they can be beautifull to watch
if they are big enough you can spend your honey moon by them ,like Niagara
or if they are in the tropics can create artificial rain forrest like victoria falls

or do super human stunts ,like going down in a barrel
apart from that they occur where the lands have changes in elevation
and the water fall bring the water quickly to the next level down

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