Indeed. The only people who use travel agencies now are corporations and folks trying to organize a big party or a honeymoon. They haven't been the same since American Airlines first posted air schedules on the internet.
Personally, I love looking through flight options and picking the one I want most but some folks (particularly business or convention travelers that are being comped) just want some agency to arrange everything and tell them what time to be at the airport, etc.
Agencies get most of their money not from the travelers but from the hotels, airlines, cruise ships, etc. that pay them to funnel customers onto their "package" deals. That's why sometimes the agencies offer you not what is best for you but what makes them the best commission.
There's still a place for that but, with the net, that place is dwindling.