I heard this today during interview for java developer. I had to list some advantages of MyISAM over InnoDB and why it's still being widely used. And they were waiting to hear from me the answer as the title of this question.
As I understand from their own answer: MyISAM doesn't have foreign keys and DB can be easily clustered (one table per server for example). But why can't we simply create InnoDB tables without foreign keys? This explaination sounds strange to me..
There is no silver bullet answer here. You need to know the pros and cons of each before you make a decision on which one you use for any particular application.
InnoDB:
MyISAM:
For example, I'd use InnoDB for things like ecommerce, user databases or anything that I want to use transactions in.
For data warehouses, logging, reporting, etc I'd probably use MyISAM.