Sure, it does, and in some circles, it's still pretty popular. I just did a quick survey of the photos currently on exhibition on 1X.com, and there are around a dozen B&W (or monochrome) photos there out of 32 on that page. These guys tend to favor highly-processed fine art photos, but this still gives some idea that there's enough B&W photography going on that it's still relevant.
One difference with B&W today vs. "way back when" -- I'd bet that the overwhelming majority of these photos were shot in color (very likely RAW) and converted to B&W. The power of processing software like Photoshop and Lightroom provide you with some awesome tools to control how your photo is converted.
When I see B&W photos that work well, they tend to be fairly simple in one way or another -- maybe they've got a single subject (a person, for instance) or they show a scene that's dominated by a single color (a forest picture that's all shades of green). Good candidates also have a lot of contrast in them -- this contrast can stand out better in the photo when color is removed (think about how the colors in your scene can map to black, white, and grey).