Here is an interesting article about what one North Carolina school district is doing about this and the comments from some parents and teachers.
Learning Cursive Writing: Is it worthwhile or a waste of time?
by Jacoba Urist
How many people today can read the Declaration of Independence? When only a few
Personally, writing in cursive saves me a lot of time when I have to write quickly and legibly. I enjoy having the option to print or write in a more beautiful, cursive style. If nothing else, learning to write in cursive gives one more options. One day cursive writers may stand out in a crowd of thousands that can only write and read printed, disconnected letters.