Why play steel strings when nylon electro-acoustics exist?

Steel string guitars are used not just because they are louder (debatable), they just have a different sound and feel to nylons and tend to be associated with different styles. You can get sounds from a nylon that you'd never get from a steel string and vice-versa. Yes, strumming is OFTEN associated with steel strings but it works for Willie Nelson and Leonard Cohen on nylons. It's all about diversity, I'd say.

Why drink tea when coffee exists?

Choice is a good thing my friend.

Its kind of difficult in open mic forums to have good sound just micing a guitar, and if the open mic involves more than one musician at a time on stage the plugging up ii better and simpler....what I find discouraging tho in the "hoots" and open mics is usually the musicians are so hungry to perform they are doing it for free, the bar is selling its "product" and the host of the open mic is usually getting paid..to me there's a time I guess for open mics in one's growth and socializing thing, but it is like karaoke, it undermines the performer making a living performing....free music so why pay<

I've been playing around with these boxes with 6 strings for 37 years, just did my very first open mic night this past Monday in Houston. 

Not all people aspire to be paid performers, some of us just enjoy sharing our tunes with others and this is one more way to do so.  I attend various bluegrass events around Texas and jam with others well into the night, but an open mic night in a pub is very different to me.  There is no attempt to undermine anyone in my mind, and I certainly don't see myself as competition for the musician who gets paid for his performances, nor would I want them to feel I were competition.  It's just the same as intramural sports and professional sports, the two are at different levels and do not necessarily need to compete or conflict with each other.

As for the OP's question, I've played classical guitars for all of those 37 years, steel strings for the past 4 or 5....they do have different sounds and I tend to chose from among my 15 guitars depending on the song.....I have some I strum on the classicals while I have some I play fingerstyle on the steel strings, although the reverse is usually more prevalent.  For instrumentals, I tend to prefer the classicals, though, for just the reason mentioned, greater range of expression while playing, but that might just be a reflection of my greater years of experience with the classical guitars than with the steel strings.  I happen to believe that the current crop of classical A/E's sound very natural when plugged into a well sorted PA system.

Dugly