It's still alive, but pushed down the layers. The OS kernel on top of which you sit still cares about things like interrupt entry latency, which means that stack usage analysis and inlining management has a home, etc... The bluetooth radio and network stacks you're using likely has performance paths that force people to look at disassembly to understand.

But it's true that outside the top-level "don't make dumb design decisions" decision points, application code in the embedded world is reasonably insulated form this kind of nonsense. But that's because the folks you're standing on did the work for you.