Here's what I have always thought about hubs nowadays:
really, a hub is a repeater (layer1 device), and most people use them as such. Hubs are pretty much copper, amplifier, power source.
For instance, if I need to extend a reach of ethernet cabling, a hub > switch because there's no error checking, no store-forward/cut-through wackiness, arp tables, or a cpu necessary. really, all you need is a power source, some copper, and an amplifier -> hub!
You get multiple ports and you can do things like sniff traffic since, in essence, one machine on the hub is passively listening to a link between two other devices and isn't supposed to be generating collisions. Basic Inline sniffers are really just a tight copper coil that wraps around an ethernet cable to "sense" the electricity in the wire through the jacket, an amplifier, and a battery. Once again, copper, amp, power.
As far as home use, I think maybe the argument is that hubs are cheaper than switches? I think those home routers use switches because when you weigh what it probably costs to throw in some switch logic vs the cost of fielding all those support calls from people asking "What do you mean I have to set the NIC to half-duplex", the numbers favor switches....not to mention end user experience in setting up a network out of box.