Directories can't really compete with search engines - the only directory that comes close is DMOZ (as google search is based on quite a lot of information based in this directory) - quality wise though DMOZ is now a waste of time as many listings are incorrect or out of date! Directories have become purely a source of backlinks - even google has cottened on to this as in the majority of cases the PRs given in the last update were lower than expected. Google is starting to give less importance to directories - especially those that are general in nature. On the upside id still say there is a place for well maintained niche directories - although these are still no where near as popular as a search engine. Given the a choice of method to find a specific site id use a search engine over a directory any day!