Well, the results of this poll are pretty interesting: about 80% of people use a battlegrid of some kind. (And only about 15% use no physical representation of location, relying on DM calls).
One might think, "Yes, but that's because of the way 3E/3.5E requires miniatures; it forces people down that path."
However, it's worth comparing it with
this poll on the 1E boards of Dragonsfoot - 73% of people there use a battlegrid of some kind. (Only 16% use no physical representation).
Those results are remarkably similar. It leads me to suspect that WotC did the right thing in setting 3.5E more in miniature gaming terms wrt combat: that's the way most people play. To a large extent, it's also easier for a new DM to learn.
When you don't use a physical representation of the battlefield, DM judgement is paramount. It's a harder skill to learn, and one that is best gained through experience - much harder to learn from a book.
I would like to see articles about running games without miniatures in
Dragon Magazine, but in truth, as I already know how to do it, it doesn't really matter to me.
Cheers!