It's still an option. There's a range of software around that allows you to set up a RAM drive.
Definitely SSDs have reduced the demand need for them though. Mechanical HDDs aren't too bad at sequential read/writes. SSDs are faster, of course, but only like 2-10 times as fast as a decent HDD. So for sequential workloads, like copying large files around, HDDs are actually pretty competitive. Plus, you can always improve sequential performance through striping (like RAID 0, or RAID 10). People who just wanted high sequential throughput generally got everything they needed either from mechanical hard drives. Those who needed more (sequential) performance and had the budget would just throw a higher-end RAID card and more drives at the problem.
Random IO, on the other hand, is a totally different story. Because of the need to move a physical head over a spinning disk, mechanical HDDs have always been terrible at random reads/writes. So things like booting a machine (or virtual machine), or launching an application, which generates loads of tiny read requests from all over the drive, run very poorly on mechanical hard drives. Here SSDs are comfortably 50-100 times faster. Unlike sequential IO, adding more drives doesn't help that much either because you're still waiting for a physical head to move into position and the drive to spin.
It was the random IO that really benefited from RAM drives... and it's the random IO that SSDs have made such a big difference to. RAM is still far faster at random requests than SSDs, but given that SSDs are already >50 times faster than a HDD for these sort of workloads, that's more than fast enough for the vast majority of people.
The other thing I'd add is that I believe modern operating systems are getting better at caching relevant data in RAM. There's no benefit to having RAM empty, so if you have plenty of RAM Windows (and other moderns OSes) will leave (= "cache") data in RAM just in case you use it again. I moved to 32GB RAM a while back and noticed that applications launched for a second time, even much later, will load almost instantly. When I open something like Photoshop the first time it takes a while. But with 32GB RAM I can close it, play a bunch of games, do some video editing, etc, and then open Photoshop again and it will load almost instantly. There's so much spare RAM that Windows will just leave the Photoshop assets in there in case they're needed again, which is exactly what a RAM drive would do anyway. With a dedicated RAM drive I could directly control what's stored there, which might be helpful, but you still need to move the data into the RAM drive at boot (RAM loses all data once unpowered) and you have to manage the small amount of RAM storage manually. The point is, often it's better just to let Windows (or whatever OS you have) manage your RAM in the background. It's actually pretty decent at caching IMHO.