VIM doesn't do anything automatically. No automatic indenting, no ability to recognize blocks of code, no code highlighting. The only appealing part of VIM is that it runs over SSH and, like you said, is pre-installed. So if you need to quickly change a file on a server that has no desktop manager and it'll be quicker than transferring the file to your local machine and back, then use VIM. Otherwise, it's about par with TextEdit for how useful it is.
You must be talking about "plain" vi. Vim stands for "vi improved" and actually has automatic indenting, highlighting, etc.
There are also ports for just about any OS out there, so I find myself using it quite a lot.