No, much less now than before .. Merino wool, which is very soft with long fibers with a low micron, is used for baby clothes, underwear and socks and garments directly on the body. We normally define fibers with microns highter than 21 as itchy. This wool does not irritate the skin unless you are very sensitive. There will always be users with very sensitive skin that will react to wool. For them, garments with polyester inner and wool can ultimately be a good alternative. Our 50Fifty quality underwear is a good example. Also other blend qualities with e.g. Tencel can be good alternatives.
It has also emerged in a new research report from BJD (British Journal of Dermatology, 2017) that wool relieves atopic eczema.