It's still true that UDP is necessary for realtime communication. I recently worked on an MMO project in which a sub-team attempted to use TCP as the main layer, but ran into huge issues, all of which were cured by switching to UDP. TCP is good at what it's good at, but nearly every realtime audio and video protocol is gonna keep using UDP. You have to be able to ignore dropped packets instead of blocking the entire channel waiting for a full RTT, it very quickly spirals out of control.
Of course, TCP is a much better protocol for infrequent and request/response type interactions, so while I was at Linden we converted as much traffic as possible to TCP/XML. But a lot of the "realtime" stuff like object updates had to remain UDP, for empirical reasons.
Second Life didn't reimplement fragmentation -- messages just got truncated if they went over the MTU, lol.