If the output can't be negative,...
Whether a voltage is positive or negative depends on how it is measured. The negative (black) terminal is the reference against which the positive (red) terminal is measured. placing meter probes such that the red probe is on the black terminal and the black probe is on the red terminal will measure the voltage as negative. So the output voltage can be negative.
why does it have a negative rail beside ground?
The word ground needs clarification. The green terminal is connected to the chassis and power earth. It is not a negative "rail". It is used to connect a circuit under test to a common mode voltage (not necessarily 0V) that is also common to the operator. It is commonly called zero volts, but be careful. It is zero volts only if used that way. Zero volts is arbitrary depending on where the black probe of the voltmeter is placed.
Why not just have ground?
This is a laboratory voltage supply. Having a separate power earth connection provides flexibility for circuit testing, with or without power earth a attached. It allows a static dissipative connection (if implemented properly) to power earth to an otherwise insulated circuit.
Test equipment (oscilloscopes for example) probes can have a power earth connection already, so a floating circuit may be convenient.
In a circuit, should I connect my circuit's ground to the negative or to ground of this voltage?
Here ground is being used to mean circuit common in one sense, and the negative of the power source in another sense. This is often used to represent zero volts in a circuit. The negative (black) terminal of a voltage source is not ground unless it is connected to ground. Be careful not to confuse negative with ground.
The phrase "ground of this voltage" is ambiguous. The red terminal is positive relative to the black terminal. It does not "have a ground" in any meaningful sense.
Either the positive or negative terminal may be connected to power earth. There is no general requirement that the negative terminal should be grounded.
simulate this circuit – Schematic created using CircuitLab
The red and black terminals should be considered like a variable battery connected between them, "floating in the air. When a conducting path is closed from the red to the black electrons will flow out of the black terminal and into the red terminal. The green terminal is not involved.