I recently moved from an apartment to a house downtown with a tiny backyard, and it's a huge improvement. We didn't really use it in February/March. But the rest of the time it's awesome.
Now, I have family and kids and totally enjoy having it even though I only get to use it 4-5 months out of the year: - kids spend a lot of time there on the trampoline - my wife has an organic garden and beautiful flowers - my dog chases rabbits and squirrels - enjoy being outside without having to go to a park (reading books, playing with my kids) - family gatherings, BBQs and etc
There's no way I'm going back to living in an apartment or even a townhouse with no backyard unless I really have to...
I think they're a ridiculous pain in the ass and largely useless but that's beside the point -- some people still derive enjoyment from them.