At least in the U.S.A they still use it , and probably also elsewhere, but in the future (I did not write "near"!) it will probably be eliminated.
In the United States until 1991, a demonstration of the ability to send and receive Morse code at 5 words per minute (WPM) was required to receive an FCC amateur radio license. Demonstration of this ability is still required for the privilege to use the HF bands. Until 2000, proficiency at the 20 WPM level was required to receive the highest level of amateur license (Extra Class); effective April 15, 2000, the FCC reduced the Extra Class requirement to 5 WPM
http://www.arrl.org/announce/regulatory/wt98-143ro.pdf
The World Radiocommunication Conference of 2003 (WRC-03) made the international Morse code requirement for amateur radio licensing optional.
http://www.iaru.org/rel030703att2.html (see below :
25.5 §3 1) Administrations shall determine whether or not a person seeking a licence to operate an amateur station shall demonstrate the ability to send and receive texts in Morse code signals. )
Many countries subsequently removed the Morse requirement from their licence requirements. http://www.nocode.org/articles.html
In July 2005 the Federal Communications Commission published a Notice of Proposed Rulemaking that, if made a permanent FCC Rule, would eliminate all Morse code testing for amateur radio licensees in the USA. As with all informal rulemaking under the Administrative Procedures Act, it will take time for the Rule to go into effect, as a long Comment period must be observed. Most expect the period of Comment and debate to be contentious, as many amateur operators believe eliminating code testing to be detrimental and contrary to the heritage of radio, while others strongly hold that requiring code is outdated, and keeps new blood out of the hobby.
http://en.wikipedia.org/wiki/Morse_code