If a motorcycle goes down at highway speed, or even moderate speed, the rider can slide for a considerable distance on the road surface before coming to a stop. This sliding and or tumbling causes damaging friction, much like exposing your skin to sandpaper or a grinding wheel (not a pleasant thought at all). Exposed skin can suffer devastating damage from exposure to the road surface, cotton shirts and jeans also offer very little protection before being torn away or shredded.
Leather motorcycle jackets and chaps provide a barrier of protection between the riders skin and the harsh road surface, absorbing impact and abrasion. The tough leather jacket, and padding underneath, will wear away on the road surface, absorbing friction and giving the rider time to slide to a stop before the road surface reaches their vulnerable skin.
Nobody ever climbs on their bike planning to be involved in an accident before reaching their destination or returning home, but accidents do happen - and if it happens to you, I guarantee you will be thankful you were wearing leather. 
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