How can Apache's mod_rewrite be utilized to enhance the functionality of PHP scripts for URL manipulation?

Apache's mod_rewrite can be utilized to rewrite URLs in a more user-friendly format, making them easier to read and understand. This can enhance the functionality of PHP scripts by allowing for cleaner URLs that are more search engine friendly. By using mod_rewrite, PHP scripts can dynamically generate URLs that are optimized for SEO and user experience.

```php
RewriteEngine On
RewriteRule ^products/([0-9]+)$ product.php?id=$1 [L]
```
In this example, the mod_rewrite rule will rewrite a URL like `example.com/products/123` to `example.com/product.php?id=123`, allowing for a more user-friendly URL structure while still passing the necessary data to the PHP script.