Your "why" means that you are looking for reasons, yes? One reason (if you think there are others will depend on your philosophical beliefs, I suppose (i.e., if you are a Platonist or something)) that things in logic and math are true, ultimately, is because you (or others in the community) have said so. If you have to defend a mathematical claim, you can do so by saying that such-and-such are the rules that you are allowed to reason with and such-and-such are the things that you are allowed to take as true or given to get started. I don't know how you can ever get away from this kind of process. And who decides what's allowed? People do, and they use different justifications for allowing or not allowing certain rules or assumptions. For example, that's why there are different kinds of logic (classical, intuitionistic, paraconsistent, etc.). You might allow certain things because it accords with your everyday experiences by some interpretation or because you find the resulting system interesting or useful for some particular application.
Creating formal languages and mapping formulas to other structures (models of the formulas) allows you to (1) formalize some of the reasoning that mathematicians use and (2) generalize and make connections between different structures. (Well, these are at least two benefits; there are others.)
So you might have gotten more from this exercise if it asked for more than one interpretation that satisfies the theory. For example, instead of taking $\mathbb{N}$ as the domain, you could have taken $\mathbb{Z}, \mathbb{Q}, \mathbb{R}$, or $\{0\}$. Or you could replace multiplication in your interpretation with the function that selects the least of its two arguments. Or you could use this function with any subset of a well-ordered set and interpret the $v_i$ as the least element in that subset. So considering the set or class of all models of a given theory can be very fun and cool. You can also ask questions like "Are all models of this theory isomorphic (i.e., essentially the same structure)?", which is an early question considered in model theory. The answer for your example is clearly "no", but if there is such a theory, there's a sense in which it actually describes its models very well, i.e., to a high level of specificity, or you might say it means that your language is capable of making certain distinctions, which is a property that you certainly might want a language to have. You might also be interested in asking about the theories that describe a certain class of structures, as this allows you to categorize the structures in a new way.
As for point (1), how did you know to pick the model that you picked? You can prove that $0n = 0$ from a handful of axioms, or you can take it as an axiom itself. And this process could take many forms. You could use first-order axioms in some formal language, axioms stated in more informal mathematical language in English or another natural language, or you could come up with your own language-like structure, say, by letting piles of M&Ms represent numbers and combining piles represent addition, eventually reasoning about multiplication and empty piles. You just need for your reasoning to take some form that you manipulate in an appropriate way. Formal languages turn out to be a useful tool for this.
I hope this is helpful. It's difficult to know sometimes what the conceptual holdup is in this kind of question.
Cheers, Rachel