I've been a cross stitcher forever (only recently moved to quilting!!) and over the years I've joined lots of cross stitch quilt projects for charities, for friends who are having a hard time, etc. For the charity projects we stitch a square in a theme that has been set out and send it in. When they have enough to make the quilt they do.
I've done these for Love Quilts, Angel Quilt Project, and as well for internet friends that have fallen ill.
So no, they haven't gone out of style at all!!!! Have fun with it.