Portugal did not join UK in WW2 although cooperating. Neither has overseas colonies anymore. And it´s the US which maintains presence on the Azores. Both are NATO members. Is the Alliance still a thing, or mostly history, surviving in name only?
On paper, the treaty still stands. Its most recent use being during the 1982 Falklands war, in which Portugal allowed for the Royal Navy and Royal Air Force to refuel Nimrod aircraft on its Lajes air base in the Azores. Despite Portugal staying neutral during WW2, they did enter WW1 in March 1916 after Germany declared war on them following the internment of 36 German and Austrian ships in Lisbon in the February of that same year at the request of the British Government. Ultimately, 12,000 Portuguese troops lost their lives fighting on the Western Front in the two years that followed. However, as you mentioned, the treaty does not really have any real influence over Anglo-Portuguese relations nowadays, as relations are now conducted through the EU.
I would suggest reading this