[1] https://www.youtube.com/watch?v=xtElSNMkums&list=OLAK5uy_kei...
[2] https://en.wikipedia.org/wiki/Me_and_You_and_Everyone_We_Kno...
As for why it's used by all those famous musicians: I'd take that statement with a grain of salt, it's not like any of them used the SK-1 as their main instrument. But lots of people use limited and quirky stuff as inspiration, or for getting single unique sounds to mix into their works.
For example, people have soldered new connections to chips and even drilled holes in them to create intentional distortions.
As to why artists use it - well, there's always a use for kitschy things in art. If you need a lo-fi sample, perhaps this is the tool to look for.
[edit] Here's an example of a modified gameboy (https://www.youtube.com/watch?v=jJ7eM6FfTXQ)
Though the potential is generally limited, you can get surprisingly fun sounds from weird or bad gear. It's not like anyone is using an SK-1 as their main instrument for much of a full song, let alone an entire album