It seems like I can serialize classes that don\'t have that interface, so I am unclear on its purpose.
ISerializable is used to provide custom binary serialization, usually for BinaryFormatter (and perhaps for remoting purposes). Without it, it uses the fields, which can be:
[NonSerialized])By implementing ISerializable you can provide your own binary serialization mechanism. Note that the xml equivalent of this is IXmlSerializable, as used by XmlSerializer etc.
For DTO purposes, BinaryFormatter should be avoided - things like xml (via XmlSerializer or DataContractSerializer) or json are good, as are cross-platform formats like protocol buffers.
For completeness, protobuf-net does include hooks for ISerializable (allowing you to use a portable binary format without writing lots of code), but BinaryFormatter wouldn't be your first choice here anyway.