I still use them to pay for school uniform, school photos and school trips, to pay the milk man, to pay my credit card, to pay my hairdresser, to pay my paper bill at the newsagents, and to send my nieces birthday money.
I work in a Post Office and many people use cheques to pay bills, invest money (eg Premium Bonds) or to pay for their car tax.
So yes, places do still take them, and no they are not totally phased out.