The can be used as distractions in some traps, such as water filled rooms, air removal rooms, or poison gas. Room full of methane and skeleton covered in flint could get real interesting. Low level undead that pull adventures into pits of deep water, or freezing salt water.
There are also a number of spells from MoF, RR, and RR2 to improve low level undead.
*Stone Bones: +3 natural armor, clr 2, MoF
*Iron Bones: +5 natural armor, clr 4, MoF
*RR2 has a spell for skeleton's to fling their fingers
*RR2 also has a "this undead explodes when it dies" spell
General of Undeath increases the number of controled undea by 10xLvl worth of HD. Crl 8, MoF.
I have always been amused by a neutral cleric using animate dead to create undead chickens for trap finding.
Creativity is the best part of animate dead. A couple huge zombie dragons is still something not to sneeze at.