Do people still make Japanese swords in the traditional style?
Yes, there are many good smiths both in and outside of Japan. You can find a number of excellent non-Japanese smiths who can make a product of the same quality without too much trouble if you know where to look. The only difference will be where the sword is forged and who did the forging. Do a lot of asking around before you buy, and be ready to pay a few thousand dollars for a traditionally made sword.