You are correct that the atmosphere in a physical casino is much more appealing. And something such as planning a trip to Las Vegas is an event the entire family can go to. None of this is possible at an online casino.
The online gambling isn't only geared towards gambling addicts. For many people like myself I just play because I find it more appealing compared to video games and I usually only play to kill time.
Other people like hardcore gamers they play Counterstrike all day and playing dice is no different. You control your risk so you can bet like 1 Satoshi per bet and you are doing it purely out of fun.
Also there are gambling addicts that frequent casinos also, its not only an online thing. Pretty sure there are more physical casino addicts than a online casino.