I wonder how prevalent this is these days. The only reason that we've got a landline is 'cos you need one to get DSL.

Qwest (formally US West back then) botched the rollout of DSL for the most part. You still can't get anything much above 640k down without paying a fortune. So most people around here went other routes, such as wireless or cable. My new house doesn't even connect to a landline, though I suppose I should order one month of phone service just so Qwest puts down the wire before I landscape the back yard.
I very rarely make or receive any calls on it. It can be quite useful when you've left your mobile somewhere else in the flat and can't find it -- how else are you going to phone it to make it ring?

I've lost mine a few times over the years, and have found it again by sending it e-mail to the SMS gateway address, if I didn't have someone elses cell phone handy.