I have a friend who is very biased against algebraic geometry altogether. He says it's because it's about polynomials and he hates polynomials. I try to tell him about modern algebraic geometry, scheme theory, and especially the relative approach, things like algebraic spaces and stacks, etc, but he still thinks it sounds stupid. This stuff is very appealing for me and I think it's one of the most beautiful theories of math and that's enough for me to love it, but in our last talk about this he asked me well how has the modern view of algebraic geometry been useful or given cool results in math outside of algebraic geometry itself. I guess since I couldn't convince him that just studying itself was interesting, he wanted to know why else he'd want to study it if he isn't going to be an algebraic geometer. But I found myself unable to give him a good answer that involved anything outside of algebraic geometry or number theory (which he dislikes even more than polynomials). He really likes algebraic topology and homotopy theory and says he wants to learn more about the categorical approaches to algebraic topology and is also interested in differential and noncommutative geometry because of their applications to mathematical physics. I know that recently there's been a lot of overlap between algebraic topology/homotopy theory and algebraic geometry (A1 homotopy theory and such), and applications of algebraic geometry to string theory/mirror symmetry and the Konstevich school of noncommutative geometry. However, I am far from qualified to explain any of these things and have only picked up enough to know they will be extremely interesting to me when I get to the point that I can understand them, but that's not a satisfactory answer for him. I don't know enough to really explain how modern algebraic geometry has affected math outside of itself and number theory enough to spark interest in someone who doesn't just find it intrinsically interesting.

So my question are specifically as follows:

How would one explain how the modern view of algebraic geometry has affected or inspired or in any way advanced math outside of algebraic geometry and number theory? How would one explain why modern algebraic geometry is useful and interesting for someone who's not at all interested in classical algebraic geometry or number theory? Specifically why should someone who wants to learn modern algebraic topology/homotopy theory care or appreciate modern algebraic geometry? I'm not sure if this should be CW or not so tell me if it should.  

As others have suggested, your friend is getting it backwards. He's like a hammer asking what a carpenter is useful for.

Given a field (of mathematics, say), there are typically some fields that are more structured than it and others that are less structured. In mathematics, people often say the more structured ones are 'harder', and the less structured are 'softer'. For instance, in increasing order of hardness, we have sets, topological spaces, topological manifolds, differential manifolds, complex manifolds, complex algebraic varieties, algebraic varieties over the rational numbers, integral algebraic varieties. These are in a linear order, but if you throw in other subjects, you'll get a non-linear one.  (p-adic algebraic geometry and Riemannian geometry immediately come to mind.) 

(I think Gromov has some remarks at the end of an ICM address where he talks about this and gives other examples. Also, don't confuse 'harder' and 'softer' in this sense with what they mean in the sciences, which is essentially 'more precise' and 'less precise'. For instance, in science people say that biology is softer than chemistry. In fact, the two meanings are opposites because in science, more structured objects are less amenable to a precise analysis. But this typically isn't the case in mathematics.) 

Now given a subject S and a harder subject H, it's usually true that most objects in S don't admit the structure of an object in H. For instance, most topological manifolds don't admit a complex structure. On the other hand, for the objects of S that do admit such a structure, their theory from the point of view of H is typically much richer than that from the point of view of S. For instance, the study of Riemann surfaces as topological spaces is less rich than their study as complex manifolds. You might say that softer subjects are broad and flexible and harder ones are rich and rigid. Mathematicians tend to view subjects that are softer than their specialty as general nonsense, and harder ones as excessively particular.

This is not to say that a soft field is easier or less interesting than a harder one. Even if it is true that the directly analogous question in the soft subject is easier (e.g. classify Riemann surfaces topologically rather than holomorphically), it just means that the people in the soft subject can move on and study more sophisticated objects. So they just get stuck later rather than sooner. For instance, over the past 50 years, a big fraction of the best number theorists have been studying elliptic curves over number fields. Now elliptic curves over the complex numbers are much easier (I think there hasn't been much new since the 19th century), so the algebraic geometers just moved on to higher genus or higher dimension and are grappling with the issues there, issues that are way out of reach in the presence of arithmetic structure. 

Now my main point here is that soft subjects were typically invented to break up the study of harder ones into smaller pieces. (This is surely something of a creation myth, but one with a fair amount of truth.) For instance, the real numbers were invented to break up the study of polynomial equations into two steps: when a polynomial has a real solution and when that real solution is rational. I know very little about modern analysis, but I think that much of it was invented to do the same with differential equations. You first find solutions in some soft sense and then see whether it comes from a solution in the harder sense of original interest.

So the role of soft subjects is to aid in the study of harder ones---people usually don't ask for applications of partial differential equations to the study of topological vector spaces, but it's considered a mark of respectability to ask for the opposite. Similarly, no one talks about applications of engineering to mathematics. Since algebraic geometry is at the hard end of the spectrum above, there aren't many fields in which it is natural to ask for applications. Number theory, or arithmetic algebraic geometry, is harder and of course there are zillions of applications there, but that's not what your friend wants. Just about all mathematicians work in a subject that is softer than some and harder than others (and if you include non-mathematical subjects, then all mathematicians do). That's all good---it takes a whole food chain to make an ecosystem. But it's backwards to ask about the nutritional value of something that typically eats you.

[This picture of mathematics is of course simplistic. There are examples of hard subjects with applications to softer ones. See Donu Arapura's answer, for example. There are also applications of arithmetic algebraic geometry to complex algebraic geometry. For instance, Grothendieck's proof of the Ax-Grothendieck theorem, or the proof of the decomposition theorem for perverse sheaves using the theory of weights and the Weil conjectures. But I think it's fair to say that such applications are the exception---and are prized because of it---rather than the rule.]
