Nonsense. O(n) will never beat constant-time. Any use of lists that's required to perform well for insertions with saved iterators will use linked lists. They're a fundamental structure and won't go away.
I'd spin the argument the other way: linked lists are more acceptable these days. On a 386, you have to be careful with performance, but now, we write programs in Python even and put up with their speed. From the amount of code written in languages that use a VM (or are interpreted) I think it's fair to say a lot of people aren't at the level of worrying about cache misses in their choice of data structure.
We have fast CPUs now, so often don't need to worry about the few extra instructions that might be needed in implementing our data structures. We can look at the uses we have, work out what requirements we have and pick our structures based on their asymptotic performance. This also makes the code more maintainable: you won't have to change in your code if you find out in six months' time that for n=100 list is quicker after all. Profiling is hard work, so we should be very comfortable in our CPU-guzzling days to pick the structure with the algorithmic properties we want rather than guessing at vector.