I do some hand sewing when I am hemming pants or skirts or replacing buttons and I also am making a "yoyo" quilt. It is really more like an afghan but the yoyos are all hand sewn then sewn together by hand.
I do quite a bit of hand sewing. I usually hem slacks by hand since it looks so much nicer. The main thing I hand sew though is in the area of belly dance costuming. Apart from the skirts and veils, most of that has to be done by hand. If you are interested in hand sewing Threads Magazine had a great series last year about the different types of hand stitches used in couture sewing. I found it very informative and have adopted some of the techniques in my hand sewing.