When we reach for it
Every application with a browser or a mobile client, where the alternative is hearing about defects from customers. Knowing which errors are actually happening, and to how many people, is the difference between fixing a defect and reading a support ticket about it.
When we would argue against it
Nothing, provided personally identifiable data is scrubbed before it leaves. That is a configuration decision, and it is not the default. It also tells you what broke rather than why the system is slow, so it sits beside tracing and metrics rather than in place of them.
What it looks like in delivery
Releases tagged so a spike points at a deployment, and scrubbing rules reviewed as part of the privacy assessment. Source maps uploaded so a stack trace is readable, and the error list triaged rather than accumulated — an unmanaged feed becomes noise within a month.