I don't see much of a problem when the enviroment is homogeneous enough to the code show properly in every editor used. But when the source is shared among users of several editors, or when the users customize the way tabs are showed AND some use spaces, some problems start to happen. In the past we let the developers use tabs or spaces, whatever they wanted. Someone used tabs to show 2 spaces in their editor. Another developer customizad eclipse to show 4 spaces. And most used 2 spaces, with the editor showing the default 3 spaces for tab.
Then people started to edit the source, and not everytime formated the entire code. When the tabs as 2 spaces station shown the code, everything was fine. But if anybody else opened the source for editing, there was several misalignment.
For a while only forcing people to reformat the code at saving was enough. Until some clients had some strange rules that forced us to customize some code inside their house. Not even a notebook on their network was permited, the enviroment was theirs. And the tabbed code was pratically unreadable in some stations, where a tab could expand to 8-10 spaces on some 40 column console...
This forced us to reformat all the code to use 2 space ident. It was a severe pain, but became unavoidable... so the rule is: if the code can be read/edited by some arbitrary developer, or in some arbitrary enviroment, it is a good practice to ident using spaces.