Hand knitted baby items - would you use on baby?

[stripeyshutters]

My nephew's partner is going to be having a baby. Do people still use hand knitted items or is it just too old fashioned now? I mean things like attached images.

I loved the cardigans we were given and used them a lot over babygrows. The blankets were nice but not really used that much. If the sleep bag photo is a pattern you're considering, I probably wouldn't use it because of the hood. Hats were used, but not that much, as babies just don't wear hats often, but some how end up with hundreds.