I wouldn't be too surprised if it was still around in some capacity. But I do think that it's been blown out of proportion.
Specifically, in articles like this http://www.rfgeneration.com/news/Disc-R ... s-1337.php
Says he's got dozens of games with it, has had to replace several expensive games multiple times due to them stopping working due to it, went to a convention with 20 Saturn games he wanted and 13 of them had it, opened up sealed games and found it, worked at stores that sold CDs and encountered it all the time, and many more stories like that.
If it were truly as big of a deal as people like him made it out to be, then 10 years later you'd expect it to be a problem that everybody has encountered on many different occasions and has caused their discs to break. However, from what I've seen it's instead a small handful of people who say they've encountered it on a disc or two that still works otherwise.
I don't know if he intentionally made stuff up to scare people, lives in a really humid place with extreme temperatures, or is the unluckiest man alive. But either way, his article still seems to be commonly referenced in other articles such as this one