When I was studying Electrical Engineering, I noticed that SVDs cropped up frequently. From memory, a quick list of situations where I can recall using SVDs :
- For computing homographies in Computer Vision
- For clustering in Machine Learning
- For noise reduction in DSP
In general, when the problem can be modeled using linear algebra, SVD often proves to be a versatile tool ( for linear optimization, eigenvalue problems, least squares, etc).
However, that doesn't make it the most important topic. I could just as easily name a bunch of other techniques that are also frequently used : FFTs, Linear programming, Monte Carlo methods. If you're an electrical engineer, all of these would be useful. Yet, I wouldn't call any of them the most important topic.