I used literate programming to write ~25 programs last year, and I found that the coolest thing about the technique was crafting a narrative for understanding the problem and appreciating the solution.

One difficulty when reading somebody else's program is thinking "why didn't he just do X?" and not having a clear answer. In a good literate program—and it's harder to write good literate programs than simple programs—the author can touch on why a particular approach is unsuitable, or why he preferred one valid approach over another valid approach.

In the end, I think I prefer to write "regular code"; tools like editors, debuggers, build systems, etc. work better with real code. Still, I try to write doc-comments that inject better narratives in my programs and, hopefully, help the readers attain a better understanding.