Apparently it makes the game feel "faster" in racing games because it adds to the movement illusion. I don't know why you would use it in other games, though
Even in the 90s, the developers of 3D arcade racing games were well aware of this, ensuring that the original arcade versions of games like Ridge Racer, Daytona, and Sega Rally ran at 60fps, rather than sacrificing that smoothness to add more detail. And those games looked spectacularly good for their time.