I use it because it is simple, it gets the job done, and I don't find that I need anything more.
It's true it's missing a couple of features commonly found in code editors. But when I start thinking code folding would be useful, I take it as a sign that this file is getting too large and would be better split. Nano also obeys the simple UI principle of having a non-modal interface. I haven't used an editor with bells and whistles for some years, and I'm liking it.
Also contrary to popular belief, nano does support syntax highlighting - this just isn't enabled by default in most distros.
Now, laugh.