I don’t know how widespread it is outside of metal, but I’ve been seeing more and more bands offering tapes. Sometimes a release is only on tape, other times the tape might be $6, the CD $15 and the LP $25, so there are different ties available for those who want a physical copy. I probably got 10 tapes or so within the last year.
Tape makes a lot of sense audio-quality wise especially for people who insist on analogue for some silly reason, the prices don’t make sense, though: Tapes are expensive to manufacture. CDs and vinyl are pressed whole while tapes need to be run through a machine, centimetre by centimetre. Though maybe for small runs it does make sense as you don’t need a physical master.