* Carefully thought-out command-line interface (no checkout -b vs branch)
* Extensibility (there's an extension for absolute most tasks you might need)
* Builtin manual completeness
* Lack of sophisticated conventions (unlike Git's "branch" definition)
It's fairly powerful but simple to use. It has a lot of the same concepts and functionality as git but with much less of a learning curve. Also, "hg incoming" and "hg outgoing" are really useful. And so are extensions like hg record and hg shelve.
It's simple, while powerful.
I tried git, it's too complex. I don't like complex things, keep simple, focus on own work, and do it the best.
I believe mercurial have done her work good.
Maybe because the feature set I'm using is limited. I should explore more. For now, well, it works!