My school(Tennessee Technological University, graduated a year and a half ago) still requires a semester of C/C++...there were a couple other classes where you needed to know it to interpret the professor's example code, but were allowed to code in other languages if you wanted. I enjoy C, but feel more proficient in other languages as far as getting things done quickly. I guess I just don't use C enough to keep a good grasp of it.
I think students would get more benefit out of being forced to only use C(and assembly?) for the first couple years. It would help them get a better understanding of what the higher-level languages have going on under the hood.
I've been doing web development(Ruby) the past few years. I've played around with extending Ruby with C, but not much.
If you are looking to hire, I might be interested...its about time for a change-up in my life.