I went to A Quilters Gathering last week and saw some of each- more machine quilting, but a good representation of hand quilting too. And there were separate catagories for each.
I started as a handquilter about 25 years ago, and still enjoy it. However, I am doing a lot of FMQ now (still learning!) and love some of the effects that are possible. I think we need to respect each one as a different but very beautiful craft.