GUIDs as a primary key are quite popular with certain groups of programmers who don't really (don't want to or don't know to) care about their underlying database.
GUIDs are cool because they're (almost) guaranteed to be unique, and you can create them "ahead of time" on the client app in .NET code.
Unfortunately, those folks aren't aware of the terrible downsides (horrendous index fragmentation and thus performance loss) of those choices when it comes to SQL Server. Lots of programmer really just don't care one bit..... and then blame SQL Server for being slow as a dog.
If you want to use GUIDs for your primary keys (and they do have some really good uses, as Rex M. pointed out - in replication scenarios mostly), then OK, but make sure to use a INT IDENTITY column as your clustering key in SQL Server to minimize index fragmentation and thus performance losses.
Kimberly Tripp, the "Queen of SQL Server Indexing", has a bunch of really good and insightful articles on the topic - see some of my favorites:
and basically anything she ever publishes on her blog is worth reading.