Almost completely obsolete, considering most people in need of something to write with will opt to use mechanical pencils or pens instead. #2 pencils don't have too much priority over the above choices, but they are still used for "Fill-in-the-bubble" quizzes in schools around the country. A #2 pencil given to a student for a quiz will often be oversharpened by the teacher and used as a weapon. It may also feature bite marks from a previous student or a stupid eraser that doesn't work right.
Newer #2 pencils have modified lead, so lead posioning is no longer a concern. Feel free to eat your pencils.
It's a little known fact that #2 pencils are actually much better than #1 pencils. Sure, the #1 pencil got more girls than the #2 pencil did in high school, and the #1 pencil got signed by a multimillion dollar record company, but the #1 pencil suffers from a drug abuse problem and a lack of friends. The #2 pencil is just fine with being average.
Teacher: "Because the robots that read and grade the tests can only smell the lead used in a #2 pencil. Go back to your seat"