EDIT: It loops around to 0 every 4.something seconds, so it's not like everything after 4 is the same key. It's just a more random distribution than what you may be thinking.
so it's not even 32 bits of entropy, it's some tiny fraction of that. (system times for a few years interval)
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I think people pick it because it has a cool sounding name.
At the very best it sounds like an attractive nuisance itself of a sort that makes Mersenne Twister look safe by comparison.
I'd also agree that MT is an attractive nuisance (for similar reasons Shamir's secret sharing is), but it really doesn't matter what function was used here-- it might as well have used a NIST HMAC DRBG and it would have been equally insecure, because the insecurity comes from using the time as the seeding. Had it initialized the full MT state from the OS's secure RNG that would have been pretty ill advised but probably not practically exploitable in most cases.
That's a hell of an amateur mistake to make. 50/50 odds whether it was incompetence or deliberate fraud. Maybe 80/20; that flaw is so simple anyone can attack it. Which apparently is happening right now. It's much better if your crypto library generates keys only you can hack.