Dwolla never had native support for bitcoin transactions. We've always been used as a gateway between USD -> BTC by exchanges such as MtGox, BitInstant, etc.
This is still the case, and is still very much possible and active.
Sorry, I should've been more clear; I didn't intend to talk about native support. I was referring to the "gateway" service explicitly. The only reason I brought this up was because Dwolla was missing from BitInstant last week, but now Dwolla appears to have resurfaced back on BitInstant's form.
This is still the case, and is still very much possible and active.