I do concur with your displeasure at the state requirement for handwriting skills. I remember taking handwriting as well and hated that it actually affected my gpa (yes, I was really concerned about maintaining my gpa in the 3rd grade). No child should be subjected to that for a grade, especially if the child may have a problem writing- my boyfriend must've experienced the same thing, for he has has trouble handwriting.
Yet, while handwriting shouldn't be graded, handwriting still is an important skill to learn as best as one could. Yeah, children shouldn't need to conform their handwriting to a certain font to be deemed legible or worthy of fulfilling state requirement, but it's such a basic and essential skill nonetheless. Everything cannot simply depend on a computer (or lack of a keyboard, as you're arguing)- we'll just all become too robotic. As other people have commented, students still need to take notes, people still jot down notes to themselves. Handwriting is not obsolete, but it should no longer be a school "subject" that determines a child's movement to a higher level.