Yes there's still quite a lot of it.  Many stations operate on LPAM or LPFM and avoid the need for the (I agree!) dreadful headsets. Most now operate 24/7 on automation and have 'live' people there evenings and weekends, with the general highlight being patient request shows.   The volunteers normally take turns going round the wards collecting requests and chatting to patients, and then go back and do their shows.

I'll agree there's a lot of ego-tripping and a lot of the people who are senior in these stations have absolutely no idea what makes a good station (there are exceptions - pleased to say I worked with a few in the dim and distant past).  But generally the whole thing is well intentioned, probably does please a number of patients, and can be a useful training ground for radio presenters.