Is that still a thing? I assumed they would have done something about it by now.

Definitely still a thing. They just made it a paid only feature. Whereas free users used to be able to publicly ask @Grok to create these images before. So it is still going on, just not as visible now, and Elon is making sure they monetize it.

Just last week they were fighting Minnesota's law that makes creating this stuff illegal.

Yeah, that got stopped I think.