Thomas,
Thanks for the reply, and I will definitely work on documenting a couple of use cases for you in the coming weeks.
I work for a large, de-centralized organization with a large, centralized data center. SDE is an integral part of that data center environment with hundreds of geodatabases for hundreds of geographically distributed branches/offices housed in one location. Although SDE is centrally deployed, it is managed and used in a de-centralized fashion. For the local branch/office people, such as myself, that are in charge of managing their respective geodatabase, educating casual GIS users and local management is crucial. Branch/office SDE administrators wear numerous other GIS-related hats, and GIS teacher and evangelist are two of them.
From my perspective, the educational value of the of the Version Lineage functionality is sufficient to warrant its continued support in Esri's product line. But if educational value isn't sufficient for some, I believe there is organizational value to the tool. Visualizing how states are created and managed helps an organization understand how different program areas interact with and utilize geospatial data. I hope to provide a couple of explicit examples of where visualizing Version Lineage brings business value to an organization.