With the widespread availability of raster graphics, I wonder how often people actually have to use a character-cell terminal for editing text. (I appreciate the coolness factor.)
I use a terminal text editor when I'm doing something in the terminal, need to do a quick edit and don't want to have to switch away from the terminal into a GUI editor. For me that's typically commit messages and not-too-complex config files. In such cases using a terminal editor is simply more convenient...
I agree but it is useful when editing files over SSH. Remote X and VNC are rather a pain to set up and really not that good.