It seems Radix sort has a very good average case performance, i.e. O(kN): http://en.wikipedia.org/wiki/Radix_sort
Yet it seems like most people are still using
The other answers here are horrible, they don't give examples of when radix sort is actually used.
An example is when creating a "suffix array" using the skew DC3 algorithm (Kärkkäinen-Sanders-Burkhardt). The algorithm is only linear-time if the sorting algorithm is linear-time, and radix sort is necessary and useful here because the keys are short by construction (3-tuples of integers).