Our department sends out lots of snail mail - physcian directories, benefit explanations, pay letters, denial, etc.... so for the 'outside' world, it's snail mail. But all internal coorespondance is email.
Even personally... it's mostly email now. Not only do my brothers & sisters have email, but even my parents and my 13 yr old son (who lives with his father)... and I get more 'conversation' from him via email than I do trying to get 10 words out of him on the phone.

Have my daughter set up on email as well - but I only send her the occassional email to make her feel extra special (since noooobody evvvverrrr sends her email!! - can you tell she's a bit of a drama queen?).
I check in with the folks about every weekend or so, so unless I'm sending pics - I don't send them too much email.