what are some other common uses for an instrumentation amp?
Offline SMPS.
what are the real advantages?
better CMRR, better spec, better CMRR.
there rather expensive so i avoid them where i can but if they're just amazing for a few useful tasks than that might save me quite a bit of time and hardware!
the expensive one you saw, is either speced for higher common mode range, usually mains rated, and better CMRR. if you can get away without external passive components, go ahead build your own single chip diff.amp. there is another type, low rated CM range, TTL or CMOS or something, even a single chip can do, built by Agilent, Tektronix et al, but the price and CMRR are beyond imaginable.