I used gitolite on a VPS previously and it worked well, but when Bitbucket introduced free unlimited private repositories I switched.
IMO there is no reason to use gitolite now for unless you have (a) sensitive repos (with your own server, not a VPS of course), or (b) lots of private repos with lots of collaborators and you have no money for a Github or Bitbucket monthly fee and you aren't a non-profit (I think non-profits can get a free Bitbucket account).
That said, I'm interested to hear about other gitolite use cases I haven't thought of.