(IMHO) Everyone uses them and finds them useful. Many of the most popular and profitable websites that most people wouldn’t consider a “Directory” are arguably a directory or at least directory like in many ways.
I think of these websites as basically being directories with some sort of extra added value.
It could be argued that Monster.com is a jobs directory. About.com is an articles directory. Hotels.com is a hotels directory + booking engine, etc.
The word “Directory” is often associated to those terrible links websites that are absolutely useless. We have all searched for something and accidentally stumbled upon one of those. The content was scraped from the ODP or the Google SERPS or it’s full of worthless and off topic websites.
But if you think about… Many websites that are product review sites are actually a directory of product reviews, etc. It’s just a small twist on the most basic directory idea.
Widget Directory + Reviews = Widget Review Website.
(IMO) The more focused the directory, the more potential it has to be useful to someone. The more features and value you add to your directory (Shopping cart, Photos, Product reviews, Articles, News, Blog, Forum, etc, the less it will look like your basic “Directory” and more like an industry portal or something else.
Aloha,
Dave. 
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