It still does, so long as you're selective of the software you run on it. You could run a totally modern kernel and X.org (or Wayland) on an original Pentium with 32MB of RAM, but in no way should you expect to run GNOME or LibreOffice or Chrome or Firefox on it, at least not without glacial loading times.
But more frequently, PCs from 10-15 years ago still in service just aren't that starved on resources anymore. They'll chug along slowly, but they can still get the job done, and nobody is really surprised when they're capable of it. Hell, if you have half a gig of RAM, you can probably still run full GNOME and LibreOffice and all without major issues.