Is Letter Writing Archaic?

I believe that there is room for traditional letter writing in today's high-tech world. It is obvious that this is the case because letters are still widely used today in business, politics, academics, and even in informal communication between friends and family. When a letter is actually written and sent on paper it usually brings with it a sense of formality.
Typically when acceptance letters are sent to applicants, it is done so in letter format. A simple email does not suffice. A written letter translates into, "I cared enough about your request that I took the time to hand write a letter and send it back to you." Once a letter is received, there is a certain level of privacy between sender and receiver that can't quite be matched by email messages. You are the only on that has read the letter. Why is that? Because you physically broke the seal, opened the envelope, and read the message written on paper. When engaging in online communication, their is always a chance of having a message intercepted or even read by a third party. For these reasons letter writing should be and is still considered an acceptable practice today.