QFE is used to make your altimeter read zero on the ground, so it will indicate your height above the airfield. There are occasions, as you have found, when it seems silly, especially in America when using QFE would take the altimeter off the scale, but it is useful nevertheless - for example in mountain flying, or using a longline with a helicopter. Nowadays the trend is to use QNH all the time anyway, and the pilot has to get used to reading the airfield elevation on the altimeter when on the ground.
Just remember the the word height relates to QFE and the word altitude relates to QNH. The term Flight Level relates to QNE.
It was early!
Last edited by paco; 7th Apr 2014 at 14:50.
Reason: oops