Yeah, I would say that C++ still matters, but its position today is rather tenuous.
C is used for the exciting work in low-level operating system stuff (Linux, *BSD, most embedded work). For the high-level web and database and business application and quick-and-dirty work, we have Java (which is not a huge leap from C++) and all the dynamic languages (Perl, Python, PHP, Ruby, others). C++ tries to be as expressive as the dynamic languages and as efficient as C, and it has gotten very very complex and that's one reason think many are looking elsewhere.
But as much as I find C++ frustrating (practically whenever I use it), I really have to admire it. It's an incredibly ambitious language, and there is a reason for every one of its complex features. Its great ambition is to map all of the very high-level abstractions ever invented onto a statically-typed, compiled language... so that programmers can use very expressive features without any run-time overhead.
For example, dynamic language designers think "we want complex datatypes and don't want to worry about how their memory is managed too much, so allocate them all on the heap and we'll worry about the types at run-time." While C++ takes the approach, "we want complex datatypes without wasting bytes or clock cycles, so provide a whole lot of syntactic hints and memory management options to optimize these data structures at compile time."
C++ really makes me appreciate the delicate balance between speed and flexibility inherent in computer programming.