Storage density is greater on disks now, so even without an increase in rotational speed, more data can be read or written in one revolution. For large scale applications involving more than one disk, strategies are going to vary, and be application dependent. These systems don’t use de-frag very much, for a variety of reasons. One of the main reasons is the time it takes to de-frag, which could make a system unavailable, or unreasonably slow, for many hours, while doing little to increase performance.
The center of the drive strategy for locating data works in some cases, but not others. For applications which are opening and closing many different files, and have to frequently access directory information in the outer tracks, keeping the most frequently used files in the outer tracks speeds performance. This is more important when there are a lot of writes and caching can’t substitute for disk access. When a few large files are kept open and accessed frequently the middle tracks are better, minimizing the average seek time.
Virtually all disk drives have multiple platters now, and the term ‘cylinder’ is more appropriate than ‘track’ since all the heads are moved together on the same actuator. Using multiple heads creates a virtual cylinder, multiplying the amount of data accessible without head movement. Head-per-track drives were once common, reducing seek time to zero. But the cost trade-off of multiple heads with the high density of the tracks on modern disks has made this mode rare.
Data compression is a new variable in the equation. Since processing speed has exceeded disk access time by so much now, there is plenty of time available to compress and decompress data on the fly (especially if its done in the disk controller without impacting CPU). This increases the density of data on a single track or cylinder, minimizing the need to seek a different track.
The OP seems to be about a PC which usually has a single disk, many files, very random access patterns, and relatively slow drives. De-fragging is still a holdover from earlier times though. Most modern PCs gain only small advantages from de-fragging in common usage, because very few users maintain large random access files. Most of the performance increases seen are from frequent access to small files which get scattered and fragmented.
Of course in a few years, flash-drives and other similar technology will relegate disk drives to the category of back-up storage, and eventually they will disappear in favor of totally non-volatile recording methods like DVDs provide.