There are some strong feelings about cassettes out there on audiophile world. I think many of the folks that are critical have limited experience with good cassette decks. A decent deck is pretty hand when you borrow an LP from a friend (very common for me) and do not have reels to play with (for all the sonic advantages of R2R, I at least do not have spare tapes to afford using them to record the occasional borrowed LP or NPR concert).
The other option is to use software like Audigy to digitize the stuff we would normally record. That option is harder to execute on successfully than perhaps it sounds (pun intended). Every time I try it, the sound that comes out is dry and unappealing (user error and cheap sound cards may be partly the cause, admittedly), and the process more cumbersome than popping a cassette, adjusting levels and recording.
Another argument that attracts me is the availability of good quality pre-recorded tapes at places like Half Price Books. To me that is a cool factor. Some of the recordings I have run across are amazingly good.
OBG
PS: And the hardware decks can be beautiful and fun to play with and maintain