Handwriting is something that I do try to emphasize for my kids. I like to think that this is because good penmanship (and the diligence required to achieve good penmanship) is a good indicator of a careful and methodical mind.
(It was also something ingrained in my by my dad, so perhaps it's also a subconscious desire to inflict the same anguish on my kids that was inflicted on me, hee hee!)
Anyway, we don't actually use any hand writing curriculum. (At least not yet. I might change my mind when the kids are ready for cursive). Instead, at least three times a month the kids have to write a letter or a short story or perhaps a Bible verse. Depending on the difficulty of the topic, this could either be copy work or an original composition.
(First the kids dictate a letter to me, and then they copy it onto another sheet of paper.)
Not only do they get to practice their best penmanship, but they get the fun of posting a letter, learn the importance of sending thank you notes, as well as learn the proper way to write a letter (using indentations, paragraphs, etc.)
In an age dominated by digital media, it's important and special to get and receive a beautifully written letter!