Among historians, Said's critiques were generally taken to heart, and actually a lot of historians were already working to correct the field along the lines of Said's criticisms before Said even published Orientalism. The introductory chapter of Marshall Hodgson's The Venture of Islam (published in 1974, four years before Orientalism) jumps to mind.

The result is that I don't think you really can speak of a "modern Orientalism" (I assume you mean contemporary) after Said in the historiography of Islamic studies. Oriental Studies Departments (now often Islamic or Arabic studies departments) are far less white, male, and protestant than they would have been when Said was writing 40 years ago, for example.

You can certainly find books after Said that take much of the same approach to Orientalism and colonialism more generally. Timothy Mitchell's Colonizing Egypt jumps to mind.

There are, however, elements of Said's criticisms that I think have been rejected. His views on 19th and 20th century philology are misguided. However much Edward William Lane's views may have been incorrect, or his work misused by other's, Lane's Lexicon remains the best available classical English-Arabic dictionary 150 years later, for instance. The accusation that he ignored German Orientalism also hits home.

The result is that I think his greatest ongoing influence isn't in history at all, but as a literary critic, which is really what he was, a professor of Literature. So there are plenty of articles (scholarly and otherwise) written each year about Orientalism in contemporary popular culture, but they're not really about history or written by historians.

In general, the result is that I don't think Said is all that useful for studying Middle Eastern history. It's good to be aware of his arguments, and to think about them especially when you read older, sometimes explicitly colonialist sources, but unless you're really into Foucault and Derrida and post-colonialist literary theory and that kind of thing, I'm not sure Said is all that interesting.