I happen to really like Michelle. I know that it is dated, but leaving that aside it is a beautiful name. We considered using it with the nickname Michi. It's still on our list, but not at the top.
I agree. Michelle was replaced by Camille for a while, but then we moved on to Priscilla and Paulina... and eventually realized we adore Nadine. All those names are still on our list, but Nadine won. I would totally consider Michelle again though.