I use newsgroups alot for binary means. I used to live by it many years ago before BT as my main source of anime fansubs. It was usually the main way as it was the only form of distributed file sharing back then. With the decline of GOOD ISP (ie free) newsgroups however, its accessibility to the common man has dropped significantly. Also now that creating message boards are the easiest thing you can do, there is less of a desire to even create specialty news servers that carry specific chat groups that are open to the public. I also have to admit that when ive wanted to find information on something, or reviews on games or hardware, Newsgroups rarly turned up any help.
That said, I am signed up to a premium service called easynews. for $10 a month I get 20 rollover gigs of download. They definitely specialize in the binary (movies, music, ::coughgamescough:

side of usenet (newsgroups) as its main attraction is its web based interface where you can SEARCH and download all the files on usenet without the hastle of decoding it yourself. Considering all the image, movie, and music news groups (There are full thumbnails for both pics and movies), its actually by far the best way today to download this type of material. Saddly if easynews even tried and itunes like venture, it would fail because the riaa and mpaa are the biggest bunch of retards in the world.
Anyways, easynews is on of the more expensive premium services, but they offer excellent download speeds, a fantastic web only interface, and hold files from 50-100 days (most ISP news servers only hold for 2 days). The only thing I really wish they would implement is a way to read and post to discussion groups (the ones you actually chat in, vs the binary ones) through the web interface. You still need to use a newsreader to access those, and frankly newsreader development has all but ceased.
To get back to the article, I can understand where the flack is coming from. I think a couple years ago, easynews REMOVED a couple newsgroups that were indeed used to traffic child porn. It was actually a big issue because easynews prides itself on not censoring any newsgroups. However their policies have actually been against CP, although they clearly don't have the man power to manually filter it. What was actually ironic, when they removed the newsgroups from their system the FBI actually requested they bring them back as apparently they had success in tracking people down in it, although it didn't happen.
well this post is to long, but yea currently newsgroups are still being used heavily, although much like Bittorrent, not always for "legit" things.
