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I mean, it takes an insane amount of time during which you can't even begin to colonize the planet. Also, it is only viable in late game when you have robots and all the bonuses to habitability.
If you're playing a purifier, it's the only way to expand your empire inside your borders, but it is set and forget. If you have extra cash and a reasonable buffer, you can use it to clear blockers and/or pre-sentients off a habitable planet. Just change to a close type and back.
Terraforming is definitely worth it these days, it used to be you could terraform to one level, then terraform again. Took ages to get to what you wanted...
I have had planets completely coverred by blocking tiles and pre-sentients. It is the only way to get that planet. Too bad it killed the pre-sentients. Having to colonize the planet before being able to uplift the pre-sentients is a big pain. And in some cases, impossible to do.
I've been terraforming a lot lately. With access to both resources it only takes what, 5-10 years? For me at least that tends to pass quickly. Also apart from deals with Enclaves it's the only thing I can dump Energy Credits on in the mid-game.
It's a good way to make more space for your primary species while keeping them fairly happy, so it should help keep your factions manageable.
Right now, it's almost never worth it if planet lies within your habitability ranges of about 60%. Totally hostile - yeah, could serve if a planet is like 20-25 tiles. Otherwise - no, only mid-to-late game when you have energy capped most of the time and must use it SOMEWHERE or to terraform all planets for sectors.
Terraforming is way more viable now than in 1.1/1.2. As others have pointed out: it's pretty much mandatory for Xenophobes.
But even Xenophiles will probably have some utility out of it. After all, smaller Xenophile empires may not yet have all planet preference pops yet, and if you end up having to genetically modify lots of pops to get better Planet preferences, it may cost you a lot of Sociology research -- maybe better and cheaper to just start terraforming. Especially since it clears tile blockers.
Terraforming is definitely worth it even for non-pure races. First it removes all blockers which is really nice as you can then pick the optimal landing zone. Second it lets you determine exactly what race you want to populate on the planet to sync up with any bonuses the planet might have or simply because you want more of that race due to their inherent bonuses. E.g. you want more miners and have a strong race. Or more engineering and you have a engineering bonus race.