According to the rotary dial telephone
node, they are all but extinct in the United States but are still somewhat extant in Europe. My wife's family still has at least two in use. What is amusing about them is the fact that people can't seem to use them.
Now, admittedly, I can understand that those under the age of, let's be generous and say 25, might not have ever had to really contend with them. I did, but that's because my family wouldn't switch to tone dialing until it was free. But there are adults who I've watched stare at the phone like it had teeth. It's not too hard to figure out after a bit of futzing -- the rotating bit only rotates one way, and that nub's obviously there for a reason.
I guess it's that people aren't willing to experiment with a device. We live in an age of technophobia and Where we would like you to go today. It scares me.