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Chiming in to say that I still see them fairly frequently. But also, as others noted, most people who want fresh ground coffee can just do it at home now.
Also, I imagine that the grinders were only ever really introduced to try to sell customers on more expensive whole-bean coffee that had a higher margin than folgers. But now every independent coffee shop sells beans in-store and you can choose from 10 million options online. So its not really drawing in new customers there either.
I imagine the stores keep the grinders because they'd be a hassle to remove, but then remove them when they break, since they aren't worth it to fix.