Optical is often chosen out of TV's where the only other option is usually HDMI and may not work
I would have thought the opposite - optical is only used where HDMI is not available.
According to Wikipedia, S/PDIF is bandwidth limited and cannot support higher resolution formats:
S/PDIF can carry two channels of uncompressed PCM audio or compressed 5.1 surround sound; it cannot support lossless surround formats that require greater bandwidth