I have been carrying out 2D and 3D operations, including graphics, for many years and have never used quaternions so I don't have a feel for them. I know that they can be used for certain operations that are difficult in Euler angles and also that they can be used to find the rotation required to best fit one set of coordinates (X1, X2...XN, X=(xyz)) onto another (X1', X2'... XN').
Are there places where quaternions are essential? And are there places where they make solutions more elegant or more efficient?