In my opinion, I see them as indicator tests rather than parameter tests. They seem to be a cheap and easy solution if you want to know whether you water is ok or bad. I think they have their places in local fish store free testing and for those who keep soft coral tanks or fish only tanks. I think this applies to the KH, Nitrate, ammonia, nitrite, ph, and calcium tests. The only test that I think its useless is the phosphate test kit since the difference between 0 and 0.25 is very large when it comes to phosphate.
Yes they are no where near the quality of a much more expensive test kit, but many people in this hobby don't like testing their water and convincing them to spend 20 bucks per a test kit vs 20 or 30 for a set / 10 per an individual api test is very difficult. I am by no means anti API. Rather, I am for their use as indicators and not as measuring tools. To some people, having their nitrate read about 10 or their alk read about 9 is fine. To those with stony corals and what not, there is a difference between 9.7 and 9.1 since calculating daily use becomes more difficult when accounting for a larger margin of accuracy as well as having to guess the exact water volume of a tank.