I don't see why you wouldn't advise EPS for traffic loads (assuming there is a concrete slab above) and in areas with groundwater problems. The weakest EPS has a compressive strength of over 500 psf, and it is a hydro-phobic material.
As far as calculating loads on retaining walls using EPS as backfill, there shouldn't be any lateral load on the wall if the soil beneath the foam is sloped back at the angle of repose. EPS is great stuff, but the question always comes down to cost. At about a dollar per cf, it ain't cheap. You save money on granular backfill, compaction, and on the retaining wall itself, which, as was mentioned, may not even be necessary with the geofoam. But, even considering all of this, it may still not be the cheaper option. It is most often used when there are constraints that require its properties, and regular fill is just not very practical.