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Just to make sure I understand this system - it's really just a way to play all the major chords in 5 different voicings based on the 5 open position chords right?
I think the point is also to learn where your scale notes sit in relation to those chord shapes, to help you connect things together and learn the fretboard better.
I've dabbled in it from time to time, but have never really dug in much with CAGED. So...I could be wrong, but I think what I said is mostly right.
I use the CAGED system as a way of finding roots of the chords. If you know how to build triads you'll see those shapes of the (major) chords C A G E and D.
I've seen conflicting messages about the value of the CAGED system. Some people say it's an old outdated way to learn and is not used much anymore. Yet there are plenty of people still using it.