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Well for editing text files on a server, or for creating text files without windows new lines. If you're cruising around in the shell on your server and you want to edit a file, you'd use vim rather than downloading and uploading the whole thing. You can also launch vi from inside other programs (eg. less).
Also some people run * nix on the desktop and/or prefer to code with vi/vim, you can really be very productive once you get used to it.
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