Modmaker is intented as a developer tool, allowing developers to quickly create a module skeleton to build from. It create a module fileset from a template.
Modmaker creates a module file set (.module, .install, .info) at a specified location (eg: sites/default/modules). FIles are pre-populated with common Drupal functions like hook_menu(), from a template file set.
The version 7 template fileset contains demonstraition menus (normal, tabbed, callback) and forms (simple, dynamic and ajax). The simple form demonstraites all the common types of elements, and is a great cheet-sheet.
The base template fileset is intended at a template template. A new template set can be created from any existing template set, the base template set containst the minimum amout of code so the developer can build up a template set with their favourite functions, etc.