Hi Debra,
Most of my faculty still use the overhead in their classes although it is becoming less used. All my classrooms have instructor-only computers linked to ceiling mounted projectors for PPT or DVD's. Just because something has been around for a while doesn't diminish it's usefulness (gosh, how long has the bread toaster been around?). The overhead is a tool, and specialists know the right tool gets a job done most effectively.
Barry Westling