I have a question. What is the point of an ac router if the bandwith is limited just to 120Mbps?

I have a question. What is the point of an ac router if the bandwith is limited just to 120Mbps?

It seems to be a severe limitation of throughput.

Can someone explain please

Do you mean bandwidth/throughput from the WAN connection? The AC wifi connection will still cover all internal traffic; like streaming, backups, file copying, etc. Same as gigabit ethernet vs 10/100 ethernet; your local network experiences will be better with faster technologies.

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I got you and since my internet connection doesnt approach the 120Mbps limit it really wont make a difference

It serves to help with Bandwidth density on the LAN Traffic.