If you have Outlook 2010 and if you have that enabled in file, options, contact (and probably if you don't), you should have the folder.
AFAIK, they didn't remove it in an update (it wasn't removed here - I created a new profile in 2010 a few minutes ago to test something for another person and have it). It is in the contact navigation pane by default and is enabled as an address book, so it will show in the list of address sources when you click To.
This is my new test account - i sent some messages to one address not in the regular contacts folder and it was added to suggested contacts.