I use it all the time on my Asus Transformer (which has a keyboard dock).
As for lacking basic utilities, it seems to be a problem depending on your firmware. CM10+ comes with a lot more basic stuff than just plain busybox. I know my Samsung Galaxy S came with almost nada (meaning I needed to install busybox, it wasn't preloaded).
Anyway I now use the Transformer as my main SSH terminal. From the terminal emulator. Like on a normal Linux desktop.
I also use it for finding and grepping stuff in my user/data-folder. If I am to copy things to or from the SD-card in the Transformer, I also find myself prefering to do things via the command line, much like I do on a normal Linux desktop.
As for the phone, I can't say I use it as much there, more for stuff like looking up my IP and MAC via ifconfig etc.
But lacking tools is a problem which can be solved. If you buy "Better Terminal Emulator Pro" ($5-ish) it will offer to download and install a better, more complete (and cross-firmware consistent) set of user-space tools, including stuff like ssh.