I use it pretty frequently and find it quite usable for some applications.
hw-terminals like Tektronix xp2xx/xp4xx or HP Envizex/Entria, can't use any modern X11 applications based on GTK/QT/... cause the pseudo-color stuff is broken.
A lot of my customers in Space, Avionics, and Defense use these hw-terminals for their intranet's tasks, like accessing to Doors, a database with repositories, constraints, notes, and other reserved stuff to consult something. Basically, they access to Motif and OpenMotif applications running on SunOS/Sparc servers.
eclipse, quartus, and wireshark over remote X11 (still on a LAN). None of those are exactly graphics heavy but they are certainly "practical applications."
I am not talking about desktop session, just about exporting an application, and I am not surprised, because as I have already written in this topic, if you look at the traffic these applications do, it's nothing special, in fact, I usually use applications like { geany, nedit, xterm, gtkwave, ... } without troubles
but an high-intensitive bitmap application like a browser ... well it sucks on remote X11 because this working scheme generates too much traffic and congestion on both network layer and X11's command's queue