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Hi,
after my experience sage as a CAS is not (yet!) very spread in the pysics community, however python definitely is!!!
slelievre's list of Physics-goups using python could be extended to infinity, so maybe just one more hint: CERN also provides a python version for their excellent data analysis software ROOT which they use for the data analysis of the LHC, and this software can also (quite) easily used together with sage.
And this is exactly the point why I chose to use Sage as a CAS: via python you can extend your Sage skills to nearly all possilble problems in computational physics or data analysis.
Sage should be used by physicists because:
1) It provides a CAS with all important basic features
2) By learning sage one automatically learns python, one of the most important programming languages in physics
3) As sage is open source and is based on python, one can extend it with all python-packages one likes, and there are many useful packages for physicists. Furthermore, many of them like numpy, scipy and matplotlib are already inculded in Sage!