This of course depends on who you are talking to. If you are serving different content to humans and search engines for the purposes of search engine optimization, that is usually considered "bad", "naughty" or "black-hat". Personally, I don't see the problem, as long as you are trying to get SERPs for relevant searches.
Now a lot of people are cloaking for different reasons. Some folks cloak to keep either search engines or humans from seeing outgoing links. Some cloak to aid in subscription control and keep their pages indexed. Some use cloaking as an adjunct to automated content generation (which is usually unreadable).
On page factors aren't "dead", they just don't have the weight they used to.