While this is not common in the citys any longer, it still is in the smaller communities and in the country it seems. Not sure if it is lack of space in the larger cities or the fact that most have limited time during day to do laundry, but this seems to be a rare occasion in town. On occasion, during a weekend especially in the spring time will you see laundry out where there is still an area avialable.
My self, while I still do have a line in the back yard, it seems it is rarely used, certainly never for my diapers. The dryer just seems to do a better job of fluffing them up.