Yes, lead shot is still used for some types of hunting, but it is banned for
using on any type of waterfowl (in the U.S.) or anything that is hunted over
open water (sandhill cranes, rails, snipe, etc). Lead shot can still be
used to hunt upland birds such as quail, pheasant, chukar, turkey, etc.
Even though lead shot is banned for use on waterfowl, I am sure that some
hunters still use it illegally due to their belief that it is more efficient
at killing birds than steel (and in most cases, it is). Lead is heavier and
denser and thus retains its energy at a greater distance than steel.
Greater energy means greater killing efficiently. Manufacturers are making
great strides in improving non-toxic shot, such as steel. They have bumped
up the velocity on steel (Fast Steel) to improve its lethality and also have
developed such things as Heavy Shot (a mix of tungsten, nickel and iron)
that is reported to be better than lead. These new shot formulations are
more expensive than traditional steel, but they are more efficient at
bringing down large birds, like geese, resulting in less cripples than
traditional steel shot.

Jeff Kozma
Yakima