Another for sits at home, with my movable cup holders! Haha, used the table a couple times on the first boat, I've never had it on board for #2 and #3. On my first one I just threw a towel around it and tucked in the change room area(2075 GLi). It actually fit perfectly between the frame rail and the back of the back of the L seat midship(under sundeck)
Snacking/eating yes but also as JTaylor says as a convenient place to put stuff down without leaving marks on the seats. We rarely have so many people for it to be in the way.
My wife and I do a lot of reading on the boat while just drifting, so we use the table just to put down the book or newspapers (so the ink doesn't get on the seats), hold drinks, snacks, etc.
Another plug for 303 protectorant -- it helps keep stains from penetrating and things clean up much easier. Sounds like you had a really unfortunate situation!
Store the table under the lounge when not using it. It is priceless though when eating on the boat. I guess I am over protective but the thought of food stains on the seats kill me.