I don't have any experience using iMovie but I found a link that might be useful to people who do. Educational Technology and Mobile Learning posted about "6 Ways to Enhance Students' Learning Using iMovie".
Among the uses we are most familiar with was digital storytelling. The post also mentions using iMovie to create visual reports, book reports/trailers, and use it to provide students with out-of-class trips (like an in-class field trip).
While I mentioned previously that I didn't use iMovie, I'm sure I could use PhotoStory to do any of the above-mentioned activities too.
Just some food for thought.
Below is a video narrated by a student explaining how to use iMovie.