The main advantage of a screen wrapper is obvious. You can put a good looking, easy to use, high GUI veneer over 5250 screens, without having to spend the time and money required to analyze, rewrite and then retest all the business logic imbedded inside them as you would if you replaced them with VL components.
This is especially important for users to whom platform portability is of no real interest because they are content with a IBM i only solution.
 
Usage Examples
Some usage examples might include:    

   
Role in Modernization Projects
For a customer happy with a IBM i dependent solution, a screen wrapper might be as far as they ever take application modernization.
Realistically, screen wrappers take time and money to develop, but probably significantly less than the equivalent VL component would, especially in the application testing phase of the modernization project.
Screen wrappers are not thrown away. When time and money permit, they may still be changed into proper VL components by removing their 5250 dependency.
You would expect modernization projects to go to market using a mix of 5250 screens, screen wrappers and VL components. For example, this might be the mix appropriate to an ISV: