My best guess (not in the community or anything) is that leather does better at being durable—especially if you treat it well and condition it regularly?—than cloth and plastic-leather alternatives, which break down. I know leather is meant to be very durable and have good “properties,” but I can’t be specific.

It is something people think they want because it is more expensive and in higher trim levels in cars. But when your car is parked in the hot sun the leather feels like it burns and in the winter is freezing to the touch. Leather also doesn't breath so you end up sweating more and if your are not wearing long pants your leg will stick to the seat. Cloth is so much better functionally. Cloth also lasts longer than the fake leather they put in cars. Cloth won't peel like the fake leather.

It's breathable but works in both warm and cold weather. This makes it ideal for spring and autumn. It's easy to clean although it's also hard to maintain (you have to oil it and protect it against rain). It lasts for very long if you care for it unlike fabric or fake leather, so a leather jacket can be worn for decades and still look and feel great.

I like how leather feels like and the unique look when it's aged or beaten up. Works great with wallets, belts, shoes... but not so much your couch, especially when it's hot and humid.

Most cars that advertise leather interior aren't even real leather, they are vinyl.

@BigTrout75 many people are sensitive to dust. A car with a leather interior is easier to clean. The dust cannot stick in the seats.

Mostly people like it because it's expensive and it makes them feel rich. It is more durable than cloth but that hardly matters for most of the things it's used for.