The only advantage optical has is that it is not a physical electrical connection. Now, in the case of a dvd player or satellite/catv box and in a home AV system the advantages it has are pretty much nil.
Digital coax has the advantage of being cheaper, more reliable and more readily available. It is more reliable because you dont have to worry about getting the connector dirty, you dont have to worry about the cable coming out of the jack, as the toslink connector is a pretty poor design. and its just simpler. You can use virtually any standard rca cable for it.