There is no straight forward reason that we know of for people having pubic hair, there are some theories though. One is that is decreases the amount of friction during sexual intercourse, making it not only easier to do but more enjoyable.
One theory states that pubic hair exists to create a smell, pheromones, that would ideally attract the other sex. While we do have musk colognes that are supposed to attract the opposite sex it is unlikely that any sort of body odor in today’s society would be considered attractive. Go back a few hundred years though and who knows.
There are a number of things on our bodies that we really don’t need and pubic hair is probably one of them. The appendix is a good example of another useless body part that most of us still have. Perhaps in a few thousand years we’ll all be hair and appendix less.