Aside from that, there are some nice benefits to having a separate template language. One benefit is the extra level of security -- a designer can't bring the entire site down by making a syntax error in the template. And there's the benefit that it encourages you (rather firmly!) to separate logic and presentation. In my Django applications, I'm never tempted to give templates any logic that isn't strictly presentation-related.
Then there's stuff like the template system's automatic HTML-escaping, which we just introduced in the Django development version. Sure, I guess you could do that with a pure-Python-syntax template system, but it seems like you'd end up hacking things substantially to get that to work.
And, finally, if you don't care for Django's template language, you don't have to use it. The whole framework is just Python, after all -- import whatever external libraries you want to import.