plpgsql is very well integrated with SQL - the source code should be very clean and readable. For SQL languages like PLJava or PLPython, SQL statements have to be isolated - SQL isn't part of language. So you have to write little bit more code. If your procedure has lot of SQL statements, then plpgsql procedure should be cleaner, shorter and little bit faster. When your procedure hasn't SQL statements, then procedures from external languages can be faster - but external languages (interprets) needs some time for initialisation - so for simple task, procedures in SQL or plpgsql language should be faster.
External languages are used when you need some functionality like access to net, access to filesystem - http://www.postgres.cz/index.php/PL/Perlu%5F-%5FUntrusted%5FPerl%5F%28en%29
What I know - people usually use a combination of PL languages - (SQL,plpgsql, plperl) or (SQL, plpgsql, plpython).