They totally still happen. Rave culture, EDM, and the use of drugs like MDMA (Molly) and ecstasy is wildly popular in many circles. I've never been to a real rave, but I hear a lot about them from a close friend who is deep into the culture- glow stringing, poi, the drugs, the music, the fashion, all of it. I suppose you just have to know where to look- not that I do- but be assured they're certainly still going on. This is in the Midwestern USA I'm talking about.

I spent the summer in Germany, and I'd say raves are at least- if not more- alive in Europe than they are here. My classmates stumbled upon a particularly sketchy and disconcerting warehouse about twenty minutes from the city in an isolated rural area that hosts raves almost every weekend where people go and party from Friday night to Sunday afternoon without stopping. That was near Dresden. When we were in Amsterdam, there was a huge rave going on that weekend. We saw people all over the placed dressed to attend- and with the drugs that are often associated at such events.