Suppose, you need to calculate running total and you don't want to use quirky update idea. Then cursor will perform better than set based solutions.

There are few other situations where cursor performs better.

That's debatable. I'm not saying cursors are the root of ALL evil, but that's debatable.

In addition, what if you need to send an e-mail? If so, you will have to use a cursor.

That's what SSIS is for. :)