I’d go further and say that all physical currency is becoming increasingly obsolete. I carry on average less than $20 in real cash on an average day, and I rarely have the need to use that cash. I rely on my digital money, and have yet to have that trust broken or damaged.
Here in Canada we have Interac, I’m not sure if you guys in the States have a similar association or not. It seems to have helped to encourage the ease of use and acceptance of banking cards for everyday purchases starting in the mid 80s, so this purchase method is very ingrained in many young Canadians. For example, every single official job I’ve worked, I’ve been paid via direct deposit into my bank account, with a few exceptions for first and last pay in the form of cheques. And since I am with a bank (PC Financial, the owners of our biggest grocery chain Loblaws) that does not charge any monthly fees nor transactional fees for using Interac, I’ve never had to pay any amount to secure and access my money.
As to your actual question about pennies, no I haven’t noticed this happening in prices here in Canada. But this could be because so many of us use Interac that we don’t actually deal with these pennies, so we don’t really care for the few times we get them.