Yes, this is still used and indeed, it was not available on the earliest 747s and a few taxiway runoffs (nothing serious, but enough to get the good people of Seattle thinking) caused Boeing to offer this. There is a "bodygear steering" switch on the pilots' overhead panel (I'm not completely sure about its location - comments anyone?), used for taxiing. The idea is that the bodygear steering would be deactivated during the takeoff and landing.
I'm not aware of any incident where the failure to disengage this before takeoff led to an accident!