I think that cake pops suit different purposes. They're a great party snack because they're cute to display and easy to serve--and because everyone loves food on a stick (as has been mentioned previously!). They've also gained a lot of popularity because they're a great medium for all sorts of creative decoration--Bakerella, as you mentioned, is the queen of this and in my humble opinion does a great job of making coo-worthy confections. This makes the cake pops appealing not only to bakers but to crafters, too.
There are also some other reasons why they're appealing: they're a great way to use up slightly stale cake, they keep for far longer than cake (up to 2 weeks or so if stored properly), and they're full of fat, and as a saying I love goes, "fat brings 'em back".
Of course, all this having been said, my flavor preference is probably for a delicious slab of frosted birthday cake, but I think there's room at the cake table for these pops too!