I think penmanship is an important/useful art form and communication tool. The traditional Palmer method cursive that was originally taught in PDX schools was transformed by two calligraphers in PDX, Inga Dubay and Barbara Getty, in the 80s by introducing italic, which is so legible and beautiful it is a pleasure to see.
Handwriting Tips Penmanship - NYTimes.com
Around the same time, there was a new program instigated in the schools callled "Writers' Workshop". This had nothing to do with penmanship and all to do with expressing yourself on paper. The key to this program was "peer editing." This program, and similar ones, I believe have contributed to a breakdown in our writing skills as a society in re punctuation, spelling, and other written communication standards.