Like others said, good quality leather, yes. Fake cheapo leather, no.
I've been in a few new cars and it really varies from make to make. VW's leather and leatherette seats are all pretty nice from what I've sat in and would take it over cloth. On the other hand, a co worker of mine just purchased a new Acura and the leather seats worry me a bit. They feel thin, too soft, and truly feel like 1-2 years of daily driving will just rip them apart.
The full leather recaros in our ST are great though. Really changed my mind about leather vs. cloth.