On the program that I'm on (~500k SLOC), we use 100%. That is a program requirement to proceed to the next phase of testing. Here are the reasons behind it:
The program is used in some safety
critical situations, and you don't
want any off nominal conditions to
not be tested
If you aren't hitting 100%, then you
either wrote code that isn't
necessary, and are hence wasting
money, or you aren't testing your
off nominal paths completely. See
#1.
Your unit test scenarios should
naturally get you close to 100%,
regardless of the actual program
code coverage metric you're using.
If someone is at 95% based solely on
their off nominal scenarios,
requiring 100% isn't onerous (and,
again, you should be asking why you
aren't at a 100% then. See #2.)
Your mileage will certainly vary. If you aren't working on a mission / safety critical application, than you probably don't need to be worrying about your code coverage as much - however, I'd have to ask again: why are you writing code that you don't need?
[Edit]
Based on the comments I've received below, I should clarify. The program guideline is 100% code coverage for unit tests. That development process requirement can be waived if, for a technical reason, a branch of code cannot be reached (protected default constructor that is never called, etc.) Approval is usually granted from an external, independent portion of the organization (go go SQA).
From an integration / systems test, code coverage becomes moot, as you start looking at requirements coverage. That's a different ball of yarn altogether.
The original question was looking for real world situations: I agree that not (most?) all real world situations will warrant 100% code coverage on a unit test level, but there are certainly cases that do, and programs that do. And it is a habit of some developers to write code that they don't need, which then ends up untested. This becomes a maintenance nightmare, as a latter developer will call methods that were never "meant" to be used (or were included because someone thought they were a "good" idea). Shooting for 100% coverage forces you to answer the question "why did I write this?"