It is used in a lot of things.
TouchDesigner, Notch, vvvv (and I’m sure there are more) are node based programming for real-time graphics.
The visual programming abstracts away the nitty-gritty of the programming, allowing creative people to concentrate more on being creative.
I believe Blender also has some node based builder for shaders. Resolume has a new plugin programmer that is based on similar principals.
So, they are used. But used in spaces where programming isn’t the primary job, just a means to an end.
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