Topscore is partially correct. The very limited solubility of which you speak (6.9 g / .1 L) is why its used in liquid-liquid extractions. You may remember using a separatory funnel in organic chemistry to extract your organic substituents. For questions like that I like to think back to lab. You can also just use general principles like the fact that diethyl ether has a very small dipole and while hydrogens from H2O can bond to its oxygen it has no hydrogens to share with waters electronegative oxygen.
However, like you said, it still is somewhat soluble, but not completely. This is what makes it so great for liquid-liquid extractions.