I've been using matlab for many years in my research. It's great for linear algebra and has a large set of well-written toolboxes. The most recent versions are starting to push it into being closer to a general-purpose language (better optimizers, a much better object model, richer scoping rules, etc.).
This past summer, I had a job where I used Python + numpy instead of Matlab. I enjoyed the change of pace. It's a "real" language (and all that entails), and it has some great numeric features like broadcasting arrays. I also really like the ipython environment.
Here are some things that I prefer about Matlab:
- consistency: MathWorks has spent a lot of effort making the toolboxes look and work like each other. They haven't done a perfect job, but it's one of the best I've seen for a codebase that's decades old.
- documentation: I find it very frustrating to figure out some things in numpy and/or python because the documentation quality is spotty: some things are documented very well, some not at all. It's often most frustrating when I see things that appear to mimic Matlab, but don't quite work the same. Being able to grab the source is invaluable (to be fair, most of the Matlab toolboxes ship with source too)
- compactness: for what I do, Matlab's syntax is often more compact (but not always)
- momentum: I have too much Matlab code to change now
If I didn't have such a large existing codebase, I'd seriously consider switching to Python + numpy.