I think, people can either accept their natural hair, or simply do what they feel is best and remove it. People don't find body hair too appealing, sometimes its quite unattractive so they feel better when its gone.
Honestly? Everywhere, as in arms, legs, pits, stomach and... For me it's a cleanliness thing but I know some girls do it because guys often say they prefer "smooth" from the eyebrows down. If it was socially acceptable to "let it be" then I would, but I think that the expectation is that if you're a woman you have to "take care" of things almost every day.
I am slightly hairy, but you would never know. I hate hair and I definitely feel like I need to remove it all. I don't think you can ever really stop unless you get a hair removal lazar treatment.
I shave my legs, arm pits, arms, and pubes.
I pluck my eyebrows every few days. I bleach the hair on the side of my face, my mustache, my stomach, etc. And I wax my back every 6 months...
I have an unfortunate gene pool, and I am the only person in my family who is hairy! Not fair.