roothog - I don't think its fair to call it 'outdated.' I do think that there's a high dependency on where you are and sometimes who you play for.
Our two sons grew up in Northern CA (Bay Area). One played for a lousy HS team that hadn't had a D1 player in many, many years - maybe never. The other for a great HS team that sent lots of players onto college and pro ball. Scouts showed up at both teams' games. As many as 30, as little as 1. For that area, word does get around. I do think they will find you.
For that area, getting exposure through showcases and travel ball mostly increases the options for beyond HS. Or...for a marginal player, I'm guessing it may get you in the game over a just playing HS ball. But I also saw plenty of local players spend a lot of money on travel and showcases and reap no benefit whatsoever. Plenty of shysters out there that either don't really know what they're doing or will tell you things about talent level that just aren't true - and they ran into some of them.
To clarify a little, I don't necessarily think it's totally outdate to think it won't happen - at least in larger population centers. However, I think it's very outdated to rely on it.
I had the opportunity last December to hear a panel of about 15 D1 coaches address this situation. Unanimously, they expressed that, during the high school season, they will get out two or three times to see kids they are interested in, but will never venture outside of their immediate area - just no time. They expressed their dependence on services like PG, PBR and others to at least bring to their attention top talent. So, if you are a big talent in LA, for example, then it's easy to be noticed, at least by the many, many good schools within a short drive. Not so easy in Lamar, Colorado. Here, it used to be different not all that long ago. We had pitchers (first and second round draft pitch types) who, as recent as 1999/2000 that actually drew recruiters and scouts down here to the sticks in droves. I don't see that anymore.
sidenote: I recently dug up an old Chicago Tribune article about scouting that talked about a scout coming down here to look at Doug Brocail. He was already heavily recruited and a sure-fire draft pick. He hit 90 on the gun for the first time that day, which excited people. Now, reaching 90 as a senior gets you "interest."