Summary
Ok, this post got really big, so here's a quick summary before you read it: to program GUIs, there are a number of good C/C++ libraries (for example, QT). What most people do, on Windows systems at least, is to use a .NET language (like C#) when they want GUIs, and C/C++ when they want more control/speed. It's also very common to use both in combination, i.e. make a GUI in C# and speed-critical parts in C.
I still encourage you to read the longer answer, it contains a lot more information on your options.
Longer answer
I'll start with the big question, then answer (as best I can) your specific question about creating a GUI. I think you're kind of suffering from the fact that C is used to teach programming, and it's much easier to do so only using command line programs (after all, they're much simpler to write). This doesn't mean that C can't do all of the stuff you want, like GUIs specifically. It does. I don't think there's any type of software that hasn't been done in C, usually before it was done in other languages.
All right, some answers:
Is C Useful?
C, and its very close relative C++, are responsible for a huge portion of the world's code. I don't know if more code is written in C than any other language, but I'm guessing it's not far off.
Most of the really important programs you use are actually written in C/C++. Just for one example, Windows.
Where is C used today?
C/C++ are still used a lot. They're especially useful for developing low-level stuff (i.e. stuff like Operating Systems, which need a lot of speed, a lot of ability to control exactly what your code does, etc.).
But don't think it's all low level for C programmers. Even today, with many other languages available (which are arguably much better, and certainly much easier to program), C is still used to create practically everything. GUI applications, which you specifically asked about, are very often made with C, even though nowadays, lots of people are switching to other languages. Note I say switching: C used to be the standard language for writing, well, everything, really.
How do I develop GUIs with C
Alright, you specifically wanted to know how to create a GUI with C (I'm hoping C++ is ok too).
First of all, it depends on a number of factors:
- What Operating System are you writing for? (Windows, Mac, and Linux are the most common).
- Do you want the GUI to work on other systems as well?
The most common case is writing software to work on Windows. In that case, the "natural" solution is to write things that work with the Win32 API. That's basically the library that "comes" with Windows, letting you do any GUI work you want to do.
The big problem with this is, it's kinda hard. As in, a lot hard. This is the reason most people don't do that kind of work anymore.
So what are your other options?
The most natural is going with what's called a .NET language. Those are a bunch of languages, together with libraries, that Microsoft created. They're probably the easiest way to get a GUI on Windows. The problem is, you can't really use them from C (since it's not a .NET language).
Assuming you want to stay in C/C++ land, you can use some kind of library which makes working with the Windows API easier (since it hides all the ugly details):
- One of the most common is what's called MFC (Microsoft Foundation Classes), which are a bunch of C++ classes which make it "easier" to create Windows stuff. Unfortunately, this library is very old, and is really not that easy to use.
- The other way to go if you want to program in C++ is to use some kind of third-party library. This is a library that someone other than Microsoft created, which makes it easier to create a GUI.
- Another option is to create only the GUI part of your software in a .NET language, and use C/C++ for the other parts (or use the .NET language to do almost everything, and use C/C++ only when you really need it, for example when you need things to go really fast). This is a very popular option.
The advantage of a third party library is that, if you pick the right one, you can use the same code to create a GUI for all the Operating Systems at the same time.
I think the most famous of these libraries is QT, and also WxWidgets, but there are a bunch of other ones. I would personally pick QT since it seems to get the most fame, but I haven't worked with either.