You can use that to
- test weird dns setups
- to issue proper TLS certificates (you can do that technically, but it's less known fact and some services like let's encrypt forbid that as their rule)
- to utilize single IP and same port for multiple services (so just a common host/server configuration on typical reverse proxy, optionally with SNI to be used with TLS on top.
That's a bit of a stretch to say anyone agreed on not using IP based certs. Quite the contrary. It is present in RFC 5280 and SAN can contain an IP. It's just very rare to do that, but can be done and is done. Modern browsers and OSs accept it as well.
It's nice when you need to do some cert pinning to make sure there is not MITM eavesdropping, or for example on some onprem environments where you can't fully control workstations/DNS of you user endpoints, but still want to have your services behind certs that actually properly validate.