Yes, there are lots of issues with FTP. I've worked with it, and it is in many ways a nightmare.
That aside, you can use FTP for auth and ACL in of which HTTP and rsync just aren't capable. I'm not sure this is a flaw in the core protocol so much as the tooling, but there you have it. FTP config syntax may often be byzantine. But it's widely supported (especially on old, low-spec, or embedded devices). For newer stuff, yeah sftp is probably better. But it's still got its uses.