Another situationOne scenario where the scrips are useful is when we want our engine to be extensible by plugins/addons. These extensions are created in many cases by non-professional people (like advanced gamers and enthusiasts). Scripts are safer and easier for this purpose. By using scripts, they don't need to use compilers, and don't need to be aware of pointers...
A great example of this is the game World of Warcraft. It has thousands of addons created by the community. These addons are written using LUA + XML.