It all depends on who you are against.
Arcanine is able to take a hit, and he can deal back some pretty nice damage.
In certain situations, letting a pokemon die to take off some HP, to allow for another pokemon to go for the kill is necessary, which is an area I can see Arcanine being used in.
Incase you didn't realize, Ice is SE against more than Ground, Arcanine has both the Speed and Special Attack to take on the Dragons, actually, I'm going to run the test now.
Max Sp.Atk Arc HP Ice against Salamence (Stock Standard, 217 Sp.Def):
Minimum Damage 87%
Average Damage 95%
Maximum Damage 103%
Note most people have no Sp.Def EV's, which makes a guarenteed OHKO.
Against Dragonite (Stock Standard, 257 Sp.Def):
Minimum Damage 74%
Average Damage 80%
Maximum Damage 87%
Even that's a 2HKO.
It'd definately scare the opponent off.
A stock standard Arcanine with 217 Def, is 2HKO'd by a Max Atk Salamence's EQ.
If you get lucky and are able to hit Sal after he's been weakened, Arcanine could make great use of his Sp.Atk, after all, it IS 328 with Nature.
How about Flamethrower/HP Ice/Crunch/Extremespeed.
I'd personally prefer Roar over Crunch though.