In my experience with butter as a nonstick medium, while it does burn quicker than oils, when cooking something like pancakes that is usually not a problem. As they often preclude higher temps to begin with, and they absorb the fat readily it tends to prevent it from burning and doesn't make the food feel/taste greasy, when by the same token the oils often will--even though you'd probably have to oil the pan far less often (light brush once will do it, where with butter it's add more for each individual pancake). Though honestly I usually use the butter flavored sprays for waffle irons or griddles when doing stuff like pancakes and waffles, which is a nice in between, as it doesn't mess up the flavor profile like most oils do and feel but at the same time doesn't burn virtually instantly if the pan gets too hot for even a moment. Of course it definitely only works for the stuff you can cook a bit lower to begin with.
Butter also works great as a sort of "after thought" with a non-stick effect for some foods, as it melts and absorbs into stuff like vegetables or rice it helps to prevent them from sticking without really burning at all, while adding that great rich flavor. (To go back to the hibachi reference above, like they do with the butter at Japanese steak houses on the veggies and fried rice.) Sometimes I will use some watery butter in place of actual water to deglaze pans and make a quick sauce out of the stuck on bits with the butter base.
