I don’t think that it is obsolete, and I think people should use it. However, it should not be the primary source of your marketing budget.
One of the things you have to look at is the history of print advertising. Most business will take out an ad out of the yellow pages. A lot of the times they will take out an entire page, or two pages. They would then spend thousands of dollars and that was their bread and butter for getting clients.
Online marketing lowered the costs significantly and is able to reach a greater scope. If you show up prominently for Google, Yahoo, and Bing, that is where you will get the bulk of your clients.
Being an online marketing firm, we actually use traditional forms of print media. We have a brochure that we send out to clients. We also use print media for our project The Ad Auditor which is an auditing platform for marketing budgets.
So we actually use it regularly, but it’s not our staple. With online marketing, you will get more value with less cost.