QUOTE(sduggal @ Oct 21 2013, 09:16 AM)
Directory submission is providing your site's link to the web directory with some other details. Yes it is still useful as:-
1. It improves your link popularity.
2. It creates backlinks to your site.
3. It indexes fast in search engine.
4. You can submit to as many directories you want but one url in one category.
5. It our choice to select between paid directory or free directory.
Quite a reasonable answer. Actually there must be some care while choosing the directories because Google is updating panda, pension and other zoo keepers frequently. Choose the best directory sites having good page rank and traffic for link building and avoid those those are full of spam.