I have one on my car, mostly because the space in the housing was there, the gauge itself is stock and readily available, and I didn't have another gauge I wanted there more.
Click to view attachment You can see it on the left. I moved the gas gauge to the location of the boost gauge ('78 930 tach) and filled that slot with a voltmeter. The 911 sender mounts in the center of the stock tank without any interference to the arm with the float that reads the oil level, provided you center it correctly. You also need to cut an additional hole as big as the sender mounting plate (~3" dia.) in the engine compartment sheet metal over the sender, both to clear it and to get to the electrical connection.
It's certainly true that the gauge doesn't give you a lot of information. As others have said, it isn't even intended to be accurate except at idle when the engine is fully warm. I've found it useful for warning of slow oil consumption, and for filling the tank to the same level each time when you change the oil, although this is just sloth on my part. You could do the same things with the dipstick, but it's nicer to not get your hands dirty sometimes. Another thing is that the 914-6 tank is narrower than the 911 tank, so the level markings aren't accurate. One quart up or down in the 914 tank corresponds to about 1.3 indicated quarts on the 911 gauge. I suppose I could get the gauge face re-calibrated, but it doesn't seem worth the trouble.