A little delayed; however, there are still uses for telnet. For example, I want to have scripts like this run commands for MythTV spawned by the remote machine via Simon. For example.
I speak "Computer, Next". Simon recognizes the phonetics and fires it to the server. The server picks it up and executes the command. Said command then spawns a script, which in turn logs in to the machine I'm talking to and runs the Telnet command to advance the media I'm watching on MythTV.
Myth, to the best of my knowledge does not have the infrastructure to do things with SSH as the commands are assumed to be a local.
By doing it this way, all traffic is internal, and more importantly, the clear telnet session is not left open.
Just my two cents