This is a situation too where I am not dealing with any existing performances either. I was not referring to that. There are times I am recording live for the first time direct into a midi track. I record the midi but then manipulate the random VST at the same time. The midi data may or may not be useful but it is still nice to record the audio performance that comes out of a VST then and there live.
Feedback loops can be avoided with clever programming.
Another place I do it is in mixdowns sometimes. Sometimes the human touch in a mix is nice. (I use a digital mixer) I don't bother recording automation in some situations just the mix straight onto a track.
It is good feature. Not a deal breaker I agree but handy at times. It is nice to be able to impliment it totally within the DAW without any outside patching or setting up.