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Yes, it still exists. In fact you can have any type you design made into dry transfer by the <"a href=" http://www.letraset.com/" target="_blank">Letraset folks. In designing roughs or thumbnails, I often use a sheet of tracing paper over a sheet of dry transfer to play with direction and placement of type. This helps me visualize type in the layout. If I find develop something worth pursuing, I can either try to replicate it on the computer, or use the dry transfer and scan it in to the layout as a graphic.
Remember to trace lightly, or you'll end up losing that letter or number on the sheet to your light table!