For the last couple of years Directory Submission have been worth less and less. This has been "known" and heavily discussed on all web marketing forums these years. Still, it's still a topic, and we continue to discuss it.
All sites I create, which is about one a month, is submitted to directories. I honestly do not use any kind of automated tools, but try to find 10-20 quality directories, which is somewhat related to my niche, and not spammed to death.
I've always been a "fan" of link diversity, and I still think directory submission plays a small role in my overall ranking of a page.
I have never had any major problems with the Google Updates, and believe link diversity and quality content is the reason for that.
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