I can find lots of stuff showing me what a lambda function is, and how the syntax works and what not.  But other than the "coolness factor" (I can make a function in middle a call to another function, neat!) I haven't seen something that's overwelmingly compelling to say why I really need/want to use them.
It seems to be more of a stylistic or structual choice in most examples I've seen.  And kinda breaks the "Only one correct way to do something" in python rule.  How does it make my programs, more correct, more reliable, faster, or easier to understand?  (Most coding standards I've seen tend to tell you to avoid overly complex statements on a single line.  If it makes it easier to read break it up.)
Yes, you're right — it is a structural choice. It probably does not make your programs more correct by just using lambda expressions. Nor does it make them more reliable, and this has nothing to do with speed.
It is only about flexibility and the power of expression. Like list comprehension. You can do most of that defining named functions (possibly polluting namespace, but that's again purely stylistic issue).
It can aid to readability by the fact, that you do not have to define a separate named function, that someone else will have to find, read and understand that all it does is to call a method blah() on its argument.
It may be much more interesting when you use it to write functions that create and return other functions, where what exactly those functions do, depends on their arguments. This may be a very concise and readable way of parameterizing your code behaviour. You can just express more interesting ideas.
But that is still a structural choice. You can do that otherwise. But the same goes for object oriented programming ;)
Why use lambda functions?