I think it's merely been relegated to its proper place. I think both 'sides' in the debate now will often agree that segmented sleep provides more hours in a 24-hour period in exchange for fewer daylight hours and reduced ability to do difficult mental work in those hours. Another way to look at it is that some people should sleep a lot and work for short, concentrated periods and others should work a lot and sleep in short, concentrated periods, and each of those two patterns is suited to a different type of work. At least, that's what I've seen in the community/meta-community.