I'm starting to see it breaking into more common usage[1]. I agree that we've a way to go yet, and I agree that it's not hugely important. But I still think there needs to be a word for 'innovative tinkerer', and that 'hacker' is that word, and I don't want that word to be associated with criminality or unethical behaviour.
[1] - hackaday, lifehacker, hackathon, etc etc. Still a specialist audience, but I can't see lifehacker being born while hacker still meant 'the manifesto'.
edit:
> Within the computer world I don't think the meaning of hacker ever really went away.
I'm not so sure about that at all. I've only been a developer for ten years (which isn't that long really), so perhaps it's just that I've moved into more aware circles, but when I started web dev work, 'hack' meant 'break into a computer'. The word hack in terms of 'a hacky solution' or 'put a little hack in there' wasn't so popular, but I concede that it was around back then.
But today I can talk to almost any developer and talk about hacking on such-and-such a project and they know exactly what I'm talking about. So I think progress has been made.