The purpose behind behind inherit!, according to https://guides.cocoapods.org/syntax/podfile.html#inherit_bang
(which I would agree is not very clear), is to provide one of 3 available modes:
:completeThe target inherits all behaviour from the parent.:noneThe target inherits none of the behaviour from the parent.:search_pathsThe target inherits the search paths of the parent only.
In this question’s example it is the :search_paths mode that is being expressed. The three different modes serve different roles when testing a Pod project.
Here is an additional link pertaining to Framework Search Paths in Xcode that helped clear some confusion for me.