I was once talking to our Systems people about, why not allow Python applications. They said that every time they have experimented with allowing CGI scripts in any language supported by their Web servers, someone has always found a way to exploit their sandbox. With PHP, the applications can still get exploited, but they have never had a breach that affects the servers themselves.
So if you're a startup or a major tech company who can spend time customizing a Web server and trust everyone who has access to it, then you're crazy for using PHP. But if you're a college with 8,000 students, almost 1,000 faculty, and a bunch of support staff in addition, and a good quarter of them need Web sites, PHP's pretty much the only option that will keep you sane.
In my opinion, that's something that seriously needs fixing. But it's certainly an explanation for why PHP is still around now.