It is still useful though, when you open like 3 files next to each other on a screen. And if screens become bigger then 4 or 5 or ... Screens are wider than high, so putting things next to each other is often better than on top of another
My editor (Vim) can soft-wrap lines at word boundaries. I routinely have 3 or 4 files open next to each other and on my monitor that does not give 80 columns per file. Inserting hard-breaks at 80 columns would make it look horrible, while long lines get wrapped nicely.
I get that you can softwrap. Usually that means though, that when some code is indented, the content of a line that gets wrapped starts at the beginning of the next line (not indented). That just looks bad. I guess one could get used to it. If you can change that and make it continue at same indentation, then you need some additional marker, to distinguish softwrapping from an actual line break. Probably all possible in editors like VIM and Emacs. Just a question of configuration. I would claim though, that softwrapped lines are a bit more difficult to read, when it comes to code, than having short lines, all properly indented.
I also use vim. I prefer to keep wrapping off and line length go to 80 or so chars.
I find it easier to read this way rather than have wrapping turned on. Wrapping isn't nearly as good for my comprehension as a line break after 80 chars.