In the current project, the convention of using hard-coded strings is already well established, so all the developers working on the project are familiar with it. It might be a sub-optimal convention for all the reasons that have been listed, but everybody familiar with the code can look at it and instinctively knows what the code is supposed to do. Changing the code so that in certain parts, it uses the "new" functionality will make the code slightly harder to read (because people will have to think and remember what the new convention does) and thus a little harder to maintain. But I would guess that changing over the whole project to the new convention would potentially be prohibitively expensive unless you can quickly script the conversion.
On a new project, symbolic constants are the way IMO, for all the reasons listed. Especially because anything that makes the compiler catch errors at compile time that would otherwise be caught by a human at run time is a very useful convention to establish.