What is the right use of bake and broil? I look inside the oven and realize that when baking the heat comes from below and when broiling the heat comes from the top.

Although there's a intuition which says that the oven is small and so everything should be at the same temperature from the inside I'm sure that as I have two options there's at least one big difference.

What is this difference between them? Why do I bake a cake and not broil it? Which should I use for all kinds of meats? Depends? If I could extend this question to the default temperature of each, why are they different?
When you use an oven to bake, you can control it's temperature. When you use it to broil, it just turns on the element as high as it can go.

For baking or roasting, it is vitally important to control temperature, so don't ever broil.

When doing some veggies or meats (steaks, fish), you may want to broil. It cooks from the outside VERY quickly, so it is good for rare steak and partially cooked veg.