Yes, many homes are still built out of brick. Check out http://www.greentechmedia.com/articles/read/inside-the-green-brick-house/ for an article about a new type of brick homes that are more eco-friendly.
Very much so, in fact they are still quite popular, especially on the east coast. There are even contractor/construction companies that specialize in brick home design: http://www.glengerybrick.com/
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