Comment by hunter2_

If only the users contributing chord charts to sites like Ultimate Guitar understood this; the number of times I've seen this wrong is astounding. For example, a progression like I-iii-IV in the key of E major will be written as E-Abmin-A but ought to be E-G#min-A for the reason you stated: pratically it's confusing, theoretically it's wrong, and there's simply no upside at all.

Using exclusively sharps (or flats, but that's not so common) is for piano technicians, frequency-to-note calculators, and similar utilitarian situations that aren't in a diatonic context.

Aside: this is also an easy way to explain double sharps and double flats. If you stumble upon one, and decide to see what would happen if you eliminate it in favor of an enharmonic equivalent (i.e., a natural), you'd end up with a scale that uses some letter twice and also skips a letter. The double sharp/flat achieves the use of each letter exactly once. A bit cumbersome on most instruments (keyed instruments especially), but it does make for easier sight reading (vocals especially) when stepwise movement uses each line/space of the staff, rather than skipping.