The rel="nofollow" attribute was introduced by Google so webmasters can specify that links that use the nofollow attribute should not pass any (?) weight in Google's search engine algorithm.
This supposedly helped in the past to make web spam like blog comment spam less effective. I still see a lot of webcam in the SERPs (search engine result pages), so while web spam (aka black hat seo) might not be as effective in the past, it is still going on and yielding good results.
I don't use nofollow, because links are an integral part of the web and if I link to some website the search engines should notice, that that site or page is worth linking to.
If the use of nofollow was to decrease ,the search engines would be forced to develop new algorithms that don't rely on links as much as they do now or even to cease using links as a ranking factor at all.
Yandex (a Russian search engine) changed their algorithm to not use links as a ranking factor a while ago, but they supposedly gave up on that.
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