Everybody wants to do it.
More people say they are doing it than actually are doing it.
Most of those that actually are doing it are doing it badly.
I like the philosophy behind it. But it sort of assumes competent developers which is the opposite assumption of most methodologies. Most Methodologies (note capital M) assume average to shitty developers.
The unit testing philosophy is totally great. I always used to write unit tests for my stuff, but I never did a good job of saving them once I was happy that something worked.
* Note that I also refer to the "average" or "typical" developer as being a member of "The Bubble Sort Crowd". If you're good you know what I mean. Otherwise, you're probably a member. :-P