I use it, but I use it politely.

If I'm on the phone with someone and I've been waiting for a call and that call beeps in, I'll say to the person with whom I'm currently chatting - "Hey, I've been waiting for this call - can I call you back in X minutes?" I never put anyone on hold UNLESS the call beeping in is something I know I'll be saying "Hey, I'm on the other line with so-and-so - I'll call you back in a few"... like if I'm on the phone with my best friend and my mom calls. Mostly because if I didn't answer the home phone line when she called, she'd call my cell and bug me there so I nip it in the bud while I can.

As for work, I'm the receptionist so I'm usually just routing calls to the correct person all day.