I still use it. Partly it's habitual since "GChat" was a big reason I got my first Gmail account many years ago. At the time, most IM platforms required you to install a separate application, but since it ran in the browser, I could keep a Gmail tab open at work or at on university PCs and keep in touch with Gmail contacts (as well as AIM contacts which was still a decent number of people back then).
I still use it because it's available on Windows, MacOS, and Linux as well as both Android and iOS devices. My friends and family are on a variety of platforms but we can all use Hangouts. I still dislike some of the changes they've made as it moved from the old Google Talk to Hangouts but being able to follow conversations on mobile and in my browser is great.
I have a few friends who use iPhones and occasionally complain because they want to use iMessage, but a good 30-40% of us can't run it since we don't own iPhones or Apple computers.