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Web directories are just a way of collecting/building links to your website. Sure, people can go to a web directory to find companies but you are right most people just use Google. However when you search in Google, the results that come up can consist of your link in a particular web directory. Its just a way to build links.
There are more of them because they are easy to create and maintain compared to an article directory. Also article directories have to be high PR for people to want to submit to them so creating an article directory is kinda tougher because you have to go from 0 to 4 or 5 PR before most people will submit their article to your directory. After you take the time to write a 500+ word article, most people are going to make sure they are only submitting to a high PR directory that is definitely going to benefit them. With web directories, even though high PR is nice, people still submit to lower PR directories because it is easy and not near as time consuming as writing a 500 word article.
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