They still happen. The official raspberry pi 7” lcd panel has non-square pixels. As do a number of third party small lcd panels commonly used with SBCs.
(WAP used a special, binary image format, but the compiler for this didn't care about pixel ratio. The fun part was really designing and previewing these images on square-pixel hardware and then converting this to something which was still crisp on the actual hardware target. But then there were also PDAs, which did have square pixels…)