Nowadays no one dares to defend md5 for any use, and of course they should not!
However, much popular software still uses md5 in applications such as password hashing (although it's not simple/plain md5 and probably uses advanced techniques such as salt + key stretching). I have heard, for example, that the Drupal CMS uses md5, and as far as I know many other programs still use md5. (I think Apache does, and perhaps quite a lot of forum software perhaps.)
Why is this? Is it tolerable?
It seems these are professional and popular programs with many years of development and informed developers.