I'd have to disagree, UML is used all over the place - anywhere a IT project is being designed UML will usually be there.
Now whether it is being used well is another matter.
As Stu said, I find both Use Cases (along with the use case descriptions) and activity diagrams to be the most helpful from a developer point of view.
Class diagram can be very useful when trying to show relationships, as well as object attributes, such as persistence. When it comes to adding ever single attribute or property they are usually overkill, especially as they often become out of date quickly once code is written.
One of the biggest problems with UML is the amount of work required to keep it up to date once code is being generated, as there are few tools that can re-engineer UML from code, and few still that do it well.
