I do.
My fileserver that I have used for the last 3+ years is dual PII 300 on an Asus P2L97-DS (SCSI built in) and I have added 2x ATA133 IDE cards and set them up with linux software RAID on Gentoo. Granted, it doesn't compile anything superfast, but I did have distcc configured at one point (which helped quite a bit) but so long as you're not always updating everything, it's plenty fast for file/web server duties so long as you have enough memory (I'm running 384 MB which is pretty minimal, all things considered). I run the thing with very few fans, so it's extremely quiet and and does what it's intended to.
Don't badmouth the old equipment just yet. When linux stops supporting i686 gen hardware, then I think it's a fair statement.
I am only now migrating to a Dell Poweredge 2300 that I got for $100 (dual P3 500, 2x 15k RPM 18 GB SCSI drives) because it has an integrated SCSI backplane and a lot more room for expansion than my old case had. I ran into a guy with a bunch of quad CPU Dell 6400 servers for the same price, but I talked myself outta it since there was no way I was even getting one of those out of my car and into my basement by myself (was too huge/heavy to move by yourself).