I still use it as well. I didn't realise it was something people laughed at - WMP takes up too much screen estate, iTunes has far too much bloat, and I don't need a music player with the complexity and learning curve of emacs.
"iTunes has far too much bloat" - this is exactly why I stil have WinAmp installed. I use iTunes for organizing my music, downloading podcasts, syncing with my iPod, etc. But I also record my own MP3s - songs, voice memos, etc - and opening them in iTunes is annoying. It's slow, and it immediately adds them to my library, which I don't want.
If I double-click an MP3, it opens immediately in WinAmp. For most anything else, I use iTunes.
To be honest, I don't know what else people are using. It's one of the places I've had to do the least research in software. WinAMP has been a stalwart for over a decade.