Dwolla never had native support for bitcoin transactions. We've always been used as a gateway between USD -> BTC by exchanges such as MtGox, BitInstant, etc.
This is still the case, and is still very much possible and active.
Sorry, I should've been more clear; I didn't intend to talk about native support. I was referring to the "gateway" service explicitly. The only reason I brought this up was because Dwolla was missing from BitInstant last week, but now Dwolla appears to have resurfaced back on BitInstant's form.
I don't want to flame the shit out of you, but I don't think you know what you're talking about. Did Dwolla ever support Bitcoin transactions directly? (I only ever did personal trading with Dwolla/Bitcoin, and transactions with Mt.Gox)
The ability to send and receive USD from Mt.Gox with Dwolla is still there (although MtGox USD codes are gone from what I've heard), and you can use Dwolla to fill up your Mt.Gox account with USD, which you can use to buy bitcoins.
If there's something I've missed, please speak up! :) I am an unverified Mt.Gox speculator so I can't use Dwolla anymore, only send and receive bitcoins as well as trade.
You didn't miss anything. I was referring to the gateway service; not native service. BitInstant had supported Dwolla in the past, and then it went missing from their site, and now it appears to be back.
This is still the case, and is still very much possible and active.