Although ssh is far more secure than telnet, there are some legitimate reasons for using telnet as opposed to ssh.

One situation that springs to mind. A lot of companies out there (including where I work) have a lot of other companies accessing our systems remotely. In this instance, it is desireable to have an IDS in place, ensuring that these untrusted people dont do anything that are not supposed to.

My point being, that a network IDS is useless when it comes to encrypted protocols. Untrusted users could tunnel any type of traffic, and the IDS would know any better, which is a potentical security risk.

So remember, although ssh is more secure, there are legitimate security reasons for not using it!!