Yep, the block quote icon was removed quite a while ago after what I saw were some abuses of the feature. Some were using the feature as you would on an email list, where you would need to remind the reader of what you were responding to. This option is great in long threads where it may not be obvious who you are responding to, but in general, on a message board environment, where all threads are linked together on one page, it is not necessary. The abuses I saw involved quoting the entire message of a post when it was the one and only reply. The UBB QUOTE code has been available if you wanted to cut/paste a quote from someone.
I will re-enable the block quote feature to give it another chance.. but be forwarned.. if I see the lack of common sence in its use that I saw before.. it will be turned back off.