Why would one ever use an Octree over a KD-tree?
The cells in a $kD$-tree can have high aspect ratio, whereas octree cells are guaranteed to be cubical. Since this is a theory board, I'll give you the theoretical reason why high aspect ratio is a problem: it makes it impossible to use volume bounds to control the number of cells that you have to examine when solving approximate nearest neighbor queries.

In more detail: if you ask for an $\epsilon$-approximate nearest neighbor to a query point $q$, and the actual nearest neighbor is at distance $d$, you typically end up with a search that examines every data structure cell that reaches from the inside to the outside of an annulus or annular shell with inner radius $d$ and outer radius $(1+\epsilon)d$. If the cells have bounded aspect ratio, as they are in a quadtree, then there can be at most $1/\epsilon^{d-1}$ such cells, and you can prove good bounds on the time for the query. If the aspect ratio is not bounded, as in a $kD$-tree, these bounds do not apply.

$kD$-trees have a different advantage over quadtrees, in that they are guaranteed to have at most logarithmic depth, which also contributes to the time for a nearest neighbor query. But  the depth of a quadtree is at most the number of bits of precision of the input which is generally not large, and there are theoretical methods for controlling the depth to be essentially logarithmic (see the skip quadtree data structure).