For some basic stuff like vim it works fine. But for almost everything else I'd rather a regular CLI tool or a web interface. I suspect a lot of the popularity comes from people who want to feel like a hacker using 10 terminal windows, but actually want a GUI like experience.
Vim is special because 99% of what we do is editing text, and it is the text editor—the importance of that task overcomes the poor discoverability of a TUI. Most other programs should be CLI, so they can fit in the conventional command line toolbox.
This. A lot of folks picked it up for that reason when they were young and now are terminal-all-the-things out of sheer inertia.
Obviously people want GUIs. That's why TUIs should be compared to GUIs, not to CLIs. TUIs are nice since you get a lot of the benefits of a GUI, without having to leave the context of the terminal.