A submanifold $M$ which satisfies the equation (1) is called a self-shrinker. The name comes from the fact that if $M$ is a submanifold which satisfies one, when the MCF starting at $M$ is given by
$$M_t = \sqrt{1-2t} M, t\in [0, 1/2) $$
up to diffeomorphism.
Self-shrinkers arise as a singularity model of mean curvature flow. In the type I singularity case, Huisken shows in his paper that under the type I rescaling, the MCF converges subsequentially, locally smoothly to a submanifold satisfying the self-shrinking equation (1), see related question here.
Using again Huisken's monotonicity formula and use instead the parabolic rescaling, Ilmanen (Singularity of mean curvature flow of surfaces) and White show independently that the limit of the parabolic rescaling converges weakly to a self-shrinking flow, which is modelled by a (weak) self-shrinker.
The fact that a compact self-shrinker with $H\ge 0$ must be a sphere is generalized to the non-compact case here: if $M$ is an properly embedded self-shrinkers with $H\ge 0$, then it is either the sphere or the generalized cylinders $\mathbb S^k \times \mathbb R^{n-k}$. Actually they defined the entropy stability condition and show that all entropy stable self-shrinkers must have $H\ge 0$. See this question for more details.
Examples Indeed there are more examples than the standard one. Soon after Huisken's result, Angenent constructs using ODE the famous rotational symmetric self-shrinking doughnuts, which is an embedded self-shrinking surface of genus one. Chopp constructs numerically a lot more examples (compact or noncompact, higher genus). Some of the example there are recently constructed using desingularization techniques here, here. It is generally believed that the classification of self-shrinkers is impossible. Colding-Minicozzi have a compactness result though.
The study of self-shrinkers has been the central objects. I don't think I can give a fair review here.
\tag{1}sets an equation number without the hard-coded spaces. :) – Andrew D. Hwang Jun 18 '17 at 14:32