Bad luck Ed.
And to think that I know of some people running hot masternodes on spot instances. Lets hope they've got backups

Are people still running hot masternodes? Why?

I'll propose a two part answer and you can work out whether its a good idea or not
1) If you really know what you are doing, there is minimal risk to running a hot masternode.
2) Setting up a hot master-node (especially if you are setting up lots via scripts and AMIs) is much simpler than a cold masternode.
Can you imagine setting up 50 cold masternodes? It'd be a nightmare.
Agree when you use scripts etc. But, for the users who have a couple of MNs like me it takes ~3-5min x MN and NO risk is better than minimal risk