Fur is warm, soft, and cozy. Spending an entire lifetime in a cage and being killed for your skin is unpleasant, but if there are painless ways of growing beef, there must be painless ways of growing fur.
There are a lot of things nobody 'needs', but it's hardly a command economy, is it? If there are things anybody wants and can be acquired without undue pain to an animal, I don't see why not.
Fur has simply become a taboo, and like all taboos, it's more a matter of a knee-jerk reaction than any considered view of the situation (you know, the type that is supposed to be modded 'insightful'). A society that freely consumes leather, milk, eggs, fish and meat can hardly afford to act holy about fur.