In the book Analysis Now by Pedersen, the Spectral Theorem is that, for a normal operator $T$ acting on a Hilbert space $H$, there is an isometric star-isomorphism between $C(\text{sp}(T))$ and the $C^*$-algebra that is generated by $I$ and $T$. This star-isomorphism is called the continous functional calculus for $T$.
I am under the impression that this is the first -- or at least an early -- version of the Spectral Theorem (for the infinite-dimensional setting). First, what does this tell us, that is, why would one care about a functional calculus? Second, how does this relate to the more common multiplication-version of the the Spectral Theorem?