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I'm still kind of unclear what does scatter does. I'm assuming its just an eos wallet like metamask?

Also what is the use of the scatter desktop and the difference from scatter chrome extension?

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Scatter founder, Nathan James, made a post explaining why he created Scatter Desktop and Scatter Mobile instead of continuing his focus on the web extension. The post is quite detailed; here's an excerpt that summarises some of his thoughts:

After almost a year of deep shower-thought contemplation I came to the conclusion that an extension wasn’t working for the way I see the future of the blockchain and Scatter. It’s too limiting, still fairly insecure due to being in the browser, always at the mercy of breaking-browser-changes and it’s really not the best choice for users. So I started work on a desktop application.

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