You know the answer - inertia and lack of a better alternative. The concept is very convenient and its core incarnation: transparent sync, mobile platform suppoert, presentation (wysiwig text formatting), textual data management (notebooks, tags), and retrieval support (sorting, search) are exactly what I want in a basic textual information management tool. Each of these things individually is available in a number of products, Evernote was one of the first to package them together by design.

Then they got VC money, and like so many companies, it all went terribly wrong. They get an absurd amount of money for a service that stores data and syncs it in a cloud (a generic concept better executed by competitors) and have to somehow generate revenue to meet this valuation. So now all kinds of functionality that the users originally didn't need or want starts accumulating in the application. This introduces bloat, bugs, and UI cruft. It does chat now (lolwut). I feel they have been deliberately fighting Zawinski's Law, but it will come, it's just a matter of time.

I would welcome any suggestions for another service that is basically what Evernote 2 or 3 was.