I still do it, but I think it is dying out(like most hand work). I don't do it exclusively. I machine applique. And I both machine & hand quilt and hand & machine piece.
Some enjoy the process and the result. Others like to get to the result faster. I'm not too interested in books or pattterns that emphasize the speed of a project. Dont' care for great big blocks just to finish quicker. But for many busy women today, that's the way to go.
I hope that in the future these hand techniques don't die out.