I've seen people pass objects as params, but when DOES it make sense? For example, what does it mean?
( function(window) { })(document);
The language does not treat parameters to immediately called functions differently than parameters to other functions.
It makes sense to use a parameter whenever you want a local name in your function body for an input. In this case it's a bit confusing since window and document are likely to be confused.
( function($) { //some code of widget goes here })(Jquery);This makes inner code visible outside the function, right? (not sure) Why, this is because we can access the object (say we have "modal" widget), simply by calling it,
No. It does not by itself make any code visible outside the widget. It's just a parameter definition which provides a new&local name for a global variable.
What makes inner code visible outside is attaching it to an external object as in
$.exportedProperty = localVariable; which is a common convention in jQuery code.