Z is still used and pronounced the same way when in words or names. It's only called Zee or Zed when talking about the individual letter.Z of the Na said:"Zed"? Seriously? Wow.
The first letter of my name starts with "Z". Zach. How am I supposed to pronounce my own name if I pronounced the letter "z" as "zed"?!
Needless to say, I pronounce the letter "z" as "zee". You know, the way it is supposed to be pronounced here in America.