In what year were you born? I've heard there was a cut-off at some point in the late 90s where they stopped teaching it. Whenever it was, it was after I was in school. ;)
Still taught in montessori schools as a tool for the development of fine motor control. Education in Montessori is literally hands-on for everything, as they feel the hand is the instrument of human intelligence. So for them it's like practicing a musical instrument or learning to draw.
Previous to your comment, my experience with Montessori schools was limited to hearing of people sending their kids to them. Now I wish I'd gone to one. :)