Modern welding techniques are cheaper, but whether they are "better" is highly debatable. There are manufacturers that still make lugged steel frames, including "Dutch style" bicycles by Pashley, Gazelle, Velorbis, Batavus, and even the US Biria, and road bikes by Soma. Of course there are also bespoke and semi-bespoke options like Rivendell and ANT.

A nice article from Rivendell: "Why Lugs Are Good"