For some people (cough*me*cough) POD turned out to be a good option. I had written a novel, but it was for a niche market and I was a first-time author. I spent about a year querying agents and publishers, but nobody bit. Since writing is just a recent hobby for me (I have a full-time job and four kids) and I have no aspirations of doing it as a profession, POD was a perfect vehicle.
Of course a big publisher would have edited my book and made it better and would have distributed and marketed it and it would have been available to readers at a lower price. That would have been great. But I'm very happy to be able to write stories and have them available online all over the world in a professional format. My sales are in the hundreds as opposed to tens-of-thousands, but I'm cool with that.
And for the record, my mom LOVES my books but my best friend doesn't read fiction so he hasn't read them. I'm not sure where the other sales have come from.
ETA: And I used iUniverse which cost about $400. About 1/3 the cost of another guitar, so I consider it money well spent.