Archiving items should be used at the end of your performance cycle, to close off all "active" items. This will move them out of the default app view so that new items can be created, while still allowing you to view and report on archived data from within the same app.
For example, you've reached the end of your annual goal cycle and everyone will be setting new goals for the upcoming year. App owners will archive all the current goals from the past year, then employees will go in to the app and set new goals. Both the new ("active") and old ("archived") goals will be included in your Data table so you can report on year on year progress and view past goals.
Confirm your selection and all of your selected items will be assigned an "Archived" status flag. You'll also see them move out of the active "All items" view.
To view archived items in the live app:
You can also always view all archived items in the Data table:
Once you've archived items you may want to update your Data report templates to add a filter that excludes the Archived status flag. Or keep these items included to build historical reports.