You are probably referring the old style rice cooker. Modern rice cooker does much more than that, with controlled temperature and duration, and probably have multi preset for each thing you want to cook. And it probably don't expect people to put pre-cooked rice into it at first place.
People use both of them. The old style one for heating dishes or making soups, because it is simple to control manually. The new style one for cooking rice, because it taste better and much unlikely to mess up like old style one.
Source: I am a Taiwanese, and you literally see both of them in every home here.