Oh LOTS of people do. I just don't see the point these days. I mean I'll admit I have one directory that I paid for years ago that gives some juice but I don't think everyone just gave up on directories by any means. Haven't you gotten the annoying emails and calls about how some company is going to make your site appear high up on Google only to find they create a subdomain on their site of your page which they already have a gazillion victims fallen for it, and then they proudly state, we'lll get you into 100 directories.
The thing is, anyone can make a directory with a domain name and a cheap or even free hosting account with the click of a button. Most shared hosts have directory software. I guess the thing is how you define directory. Is it a site that is just dedicated to links of all categories that anyone can submit and get into? The free ones that allow any site are awful. We are long past the days of directories. Thats why we have search engines. I learned the hard way myself and would hate to see someone else spend time and money on directory links.
Google has shown time and time again that an engaging, well-built site with fantastic content and natural links are the key to success. Do you ever go to random directories to find a site? Now if its a directory for a specific topic and the owner chooses who they accept, and they don't have a ton of outgoing links, then thats a different story. I think of those as more of just a page on a site with some links that are relevant.
I don't think I've ever used a directory to find a site...only to find places for links. Sure I had some success, but eventually they all were deindexed or had very low PR/DA/PA/MOZTrust and had to remove them. There are a handful of expensive ones but seriously why would anyone use them? I've never gotten any traffic from these directories. I do think there is one left but its very small and relevant. http://siliconshire.org/ It's a very nice looking tiny site for a tiny city featuring the handfull of computer repair places in Eugene, Oregon and Springfield, Oregon which has a low population. (Was number one in 3 months for all my desired keyterms, thats how small), but moved away. THat's useful because Google doesn't have a list of specific businesses for a small town like that. Plus it looks cool. I just found a second one and the title is "The not so evil directory, but when you go to it its nothing but apache errors." lol
I think its all in how one defines a directory. There are spam directories that are after money or worse yet require a backlink to get in and sometimes also money, and there are directories that are small and serve a purpose that a search engine doesn't do. I snagged an awesome domain recently waiting in the wee hours and planning on turning it into somethlng similar. A small site that is dynamic for ONE business category in a small city (hair salons / barber shops). Mine also will have reviews and an algorithm and not cost a dime to get in. I plan on doing it Google style and having a clearly marked 3 link only box at the top that is highlighted and marked they are paid for ads space. I'll only allow 3 though and if someone wants in they have to outbid that business and the business only can buy 3 months at a time if others are waiting to pay. I find that ethical because its marked, not overdone, and eventually I plan on selling the domain most likely. I also have options to sort by price or by review.
I know its a service I'd use as Google places shows only a handful of businesses and most reviews are faked. (it appears that way anyways.) But I think thats more like a review site then a spam directory site only after money, and users only after PR/PA/DA/MT.
Or if you consider review sites like Yelp a directory in the same ballpark which I personally don't. I consider it a review site that is unethical that needs some serious work, I had someone attack me on Yelp with totally fake accusations which took almost a year to clear up. Yelp then would take my REAL reviews that I didn't even ask clients to do or mention and put them in the filtered section. But in a way Yelp sticks to one category...businesses and it has something different than most traditional directories...reviews. FINALLY after they noticed both reviews were written exactly the same grammar and even used my personal name they removed them, but still kept the real reviews hidden. Regardless it's still a vital site for marketing but when someone says that I took their money in two posts written the same way and I had to get a lawyer and a year of time to clear it up thats just wrong. You can read online hundreds of people complain that once they paid Yelp their real reviews that were good of course came out of filtered state. That's so wrong and not cool.
Sorry went on a tangent.