IMO they're the best filter for fish that don't like much surface movement ... of course that ultimately depends on the air pump you hook up to it.
I have mine in a 10G, so i slightly disagree with you dwarfs. but there isn't much of a need for a sponge filter in a larger tank, unless you are raising fry or killies or bettas. or for added filtration
however sponge filters are antequated, and in larger aquariums overall water quality is better with a HOB or canister