Well, even in new games, wouldn't it simply move in 8 directions? =P Unless you mean you can nudge it to move forward like typical analog sticks in new games, then that makes sense.
But yeah; I should know. Works wonders even still for the DS games though... Especially any ports. =P ... Not so much on side scrollers, though...
No, it can move in more than 8 directions in the new games that are designed to be sensitive to it. In DS games the directions you can move in are spaced apart by increments of 45 degrees. With 3DS games using the circle pad, it's possible to detect more angles than those 8.
-Canama