I wouldn't argue with any of the arguments for rendering image sequences - they make excellent sense.

My first guess was that the option to render to video was only there because it was a more straight forward process for casual users, without involving the need for a second application. OTOH, as far as I can tell, every major application, Max, Maya, Cinema 4D Vue etc. all offer direct video output - so I assume it must have some utility for someone.

"Democracy is a pathetic belief in the collective wisdom of individual ignorance." - H. L. Mencken