Filters like mean,median,gaussian,bilateral and adaptive forms of these filters are used commonly in image processing but not Butterworth filter. The reasons I could think of are
a) Butterworth filtering can be done only in frequency domain(AFAIK there is no spatial filtering equivalent for Butterworth filter, correct me if I am wrong)
b) One of the main advantages of Butterworth filter is since there is no sharp cutoff frequency, there won't be any ripples, but since Gaussian also has this property there is no need for Butterworth.
Are there any specific applications Butterworth filter offers advantage over other filters? Do Butterworth have any significance in image processing?