We use ClickOnce where I work; in terms of comparison to a web release I would base the case around the need for providing users with a rich client app, otherwise it might well actually be better to use web applications.
In terms of releasing a rich client app ClickOnce is fantastic; you can set it up to enforce updates on startup thus enforcing a version throughout the network. You can make the case that ClickOnce gives you the same benefit of having a single deployment point that web deployment possesses.
Personally I've found ClickOnce to be unbelievably useful. If you're developing rich client .net apps (in Windows, though let's face it the vast majority of real .net development is in Windows) and want to deploy it across a network nothing else compares.