Does anyone still use assembly for embedded? Of course. Is it a good idea? For some of them, and for the reasons I listed (I suppose I should add "you are working on a legacy assembly codebase").

"Still used pretty much everywhere" is just not the case anymore, even in embedded. At least, that's what the chart seems to say and it matches my experience working alongside embedded developers, knowing some embedded developers I've never had the pleasure of working alongside, and doing a small amount of embedded work myself.

(Edited to remove: Right in that link, both C and C++ are used more than assembly in the embedded space, and Arduino (more C/C++) follows closely behind assembly. The chart is unclear, but the rankings seem to be based on numbers that don't change when different filters are applied, which would mean that it does not show this. It is still certainly consistent with "assembly no longer dominates embedded", though - some of the C and C++ will be embedded, and all of the Arduino will be embedded.)