Originally Posted by sixerfan82
Please explain it then to me.
Hmm.. where to begin?
Well Excel has always been one of the primary interfaces for OLAP reporting--connect to a cube and you can slice and dice the data via PivotTables.
There's a relatively new component of Excel called PowerPivot that allows you to build a full fledged data model (complete with relationships) within your file. You can import a large amount (I'm talking in excess of 100 million rows) of data from a variety of sources, mash it together and perform analysis on top of it. You can use it in conjunction w/SharePoint for collaboration as well.
The bottom line is that in no way has Excel become irrelevant and in fact it's gained more value as a data analysis tool. Your blanket statement of "use SQL Server for everything" doesn't make any sense since you need the proper tools to gain proper insight into your data.