It's a self spotting piece of equipment. I've heard it called a power rack, rack, squat rack, cage, etc. It has bars to prevent you from squashing yourself. I use it for everything, almost and never have to worry about anything but injuries from bad form.
As far as do everything machines everyone has an opinion. I very much prefer the free weights and cables. I usually feel like I get a better workout with weights. On most universal machines you either push or pull weight. You do not balance or stabilize it. I've seen people bench press 350lb on a machine and have to drop to 250lb on a bar.
I really feel like the key is to just do something! Machine vs. free weights is kinda like Chevy vs Ford or Bushy vs Colt