Lathe cuts can be thought of as playable art pieces, rather than as a simple delivery method for audio. If traditional pressed vinyl records are the mass produced $10 poster in the museum gift shop, then lathe cuts are the higher priced limited edition screenprint made by the hand of the artist himself.
Sure, the printed poster is flawless and cheap because it was methodically churned out by the million using an automated machine, but many people prefer the artist made print because it was made by a real person and has a different set of aesthetic and collectible qualities.
Lathe Cuts don't necessarily appeal to all artists or all end consumers. But a lot of people love them for their own unique set of values, and we love them too - just as imperfectly perfect as they are :)