well if you cap the fps at around 50-60, then even slow computers will stay relatively up to speed. (depending on how complex the game is, i spose)
If it lags, it's less annoying than having to be disadvantaged by frame skipping, which can stop you doing things properly in the game, as bluemonkmn mentioned.
also, if it lags, they know their computer is too slow, otherwise, with the frame skipping stuff (i assume thats what time based does) then they think they're running it well, but then get frustrated when it stuffs up (in bluemonkmns example) or they think your game is just really choppy, not their machines fault...