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I still use both. 99% of Usenet is spam, but there still a few active groups (especially under comp.*). The BBS scene on the other hand, is booming. I see new users every week on my favourite board.
How does a current day BBS work? Landline phone connections are a thing of the past here.
telnet
If you're connecting from a modern computer, you just get a telnet client that does the appropriate code pages/ANSI/zmodem/etc. If you're connecting from a retro computer, you get a little dongle that appears to be a modem (and often accepts AT commands, including fake phone numbers), but secretly connects to WiFi and relays through a telnet connection.
Some BBSes do still have landlines, and there's the occasional ham radio BBS, but 99.999% of it is through IP-based telnet these days.
Are they doing BBS-over-SSH these days, or do you need a dial-up modem to participate?
Sadly most people CAN'T connect through dial-up, even if both parties have all the equipment. A lot of telcos have redone their entire network in VoIP stuff (with heavy compression) which makes it hard to keep a connection even at 300.
ISPs degrading the performance of other ISPs? That sounds rather anticompetitive…