It works well for personal stuff where you would like to leave some bits of information for yourself (typically, configuration files).
It works well for small libraries where good documentation is important.
It works well for visualisation-work, where you may combine multiple languages and data-formats without writing API's for each.
In larger scale apps though and with collaboration; you run into problems with tooling on multiple levels. I am working on tackling scale, but collaboration is tricky. Mostly because you need structure to collaborate and then you will likely end up with an outline that's pretty close to a directory-tree and then you've lost one of the good bits of literate code in my opinion.
It works well for personal stuff where you would like to leave some bits of information for yourself (typically, configuration files).
It works well for small libraries where good documentation is important.
It works well for visualisation-work, where you may combine multiple languages and data-formats without writing API's for each.
In larger scale apps though and with collaboration; you run into problems with tooling on multiple levels. I am working on tackling scale, but collaboration is tricky. Mostly because you need structure to collaborate and then you will likely end up with an outline that's pretty close to a directory-tree and then you've lost one of the good bits of literate code in my opinion.