- why people use it so much despite this drawback?
Corporate and Academic admins are often more noticed when things break, than appreciated when things run efficiently. Such environments Such environments breed fear of experimentation, and scorn for novelty.
- what choice(I mean other software/tool) do I have if I want the "instant content listing" capability?
dar (Disk Archiver) features a raft of tar-like features, plus enhancements such as speedy random access for compressed archives, AKA cataloging, AKA indexing, AKA "instant content listing"...
See also: Compression formats with good support for random access within archives?