IN fact, sometimes SLIGHT digital zoom can actually be superior to cropping post-capture. It's hard to believe, but it's true. For example, when using auto exposure, if you take a picture, then crop later on a computer, the exposure was based on the entire original scene, including areas you want to crop out. By zooming in, the camera can meter more accurately for your desired framing. It's true that you could also adjust exposure in post-processing, but that's an additional work you might not want to bother with if the picture will only be viewed on a screen or on a 4x6 print. Furthermore, increasing exposure in post-processing can increase noise and re-saving a jpg could further degrade image quality.
So, in summary, I normally don't use digital zoom, but there have been one or two times in the past several years that I have used it for a quick snapshot, and even then, I only used a LITTLE bit of digital zoom.