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In addition to the use case where a session token is provided as part of a Federated access model, probably the more common use case is for using IAM roles in combination with EC2 instances. Briefly, this makes temporary credentials available to the instance at a local IP address obviating the need to ever put long term security credentials on an instance. s3cmd supports this method of key delivery and will 'look' for the availability of these keys out of the box.
[As noted by @obenshaindw on PR #303]
brainstorm, markotitel, afaulconbridge, cgrelik-twist, jaredbancroft and 4 more