I think it's still done, it's just not in the limelight any more, really. Lots of YouTube channels still show it.
I think too many people saw Blaine doing tricks, and thought that's all he did. But he actually talks to people first and establishes a rapport before doing tricks. So what you get these days is kids with poor social skills...
It took me years to realize the importance of connecting with someone before you begin to share with them. I get a sense of their personality, their knowledge of magic, and their interest level in what I want to show them. You can do this while still fitting into the guerrilla category.
Why did that get a sigh?*sigh*
Because I think of Jean Eugene Robert Houdin stopping a war with his magic performances. Think of what that means. Not only does it mean that the people who were starting that rebellion respected the performance enough that they lost their nerve to rebel, but it also means that the government of a powerful nation decided that their -best- strategy was to send a magician to stop the war. Imagine the level of respect for Houdin that these actions imply.
But now we've got people like The Magic Crasher and Carbanaro using magic to ... pull pranks. Let's make a video of this dude sitting on an invisible chair at a muscle beach. Hilarity ensues!
And magicians wonder why people think magic is lame these days? Why should the general public respect magic when magicians don't?