I'm almost always shoving new code into a spot made by rewriting existing code, and since R4300i assemblers aren't exactly numerous to begin with I find writing everything by hand a lot easier. Plus, to avoid changing sometimes thousands of hardcoded hardware addresses, it's nice to just hand code something that might burn a few cycles but with enough redundancy to ensure it compresses within the same block size.
N64 hacking is a bit of a party trick anyway, but even for larger swaths of code it's just a lot easier to know it's going to fit, not fry half a dozen registers, or complain about some stupid voodoo magic or external reference it blasted well doesn't need to know about.
So, at least in my case, it's hex editor the whole way.