Does the US phone system still support rotary dial phones?

Yes it does. All Plain Old Telephone Service (POTS) lines are required by regulation to work with rotary dial phones . So, POTS telephone lines from your LEX like AT&T and CLEX carriers like Comcast will work. read more

The rotary phone works by hanging up the phone a certain number of times that corresponds with number dialed. For example, when you dial the number 5 and let go, the phone will quickly hang up five times as the dial returns back to its resting position. You can dial a phone by quickly hanging up the correct number of times for each number. read more

b) Recently, there was an announcement that the FCC (as I recall) is passing a regulation that phone cos. will no longer have to support analog (rotary or pulse dialing) thereby rendering these rotary phones useless. read more