I use literate programming, and Knuth's CWEB in particular, and I find it fits for me perfectly. Honestly, I think the biggest problem is that most programmers have never heard of it or think it's something like JavaDoc.
I find it astonishing that so few people are willing to try something developed and strongly advocated by the man who single-handedly programmed TeX, MetaFont, and the Stanford GraphBase, and wrote the most respected texts in computer science.