I usually have ~20 terminal windows open, some of which have sessions opened on 4 different machines. If the host name and current working directory are not in the prompt, I need to check both every time I switch windows. Otherwise there’s no way I won’t make a mistake and do some stuff in the wrong place or on the wrong server.
I can accept that my use case is not typical, but these things are actually useful.
I can't imagine using a CLI prompt without knowing what directory I'm in. How would that even work?