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Depends where you are. In my city, I don't know any -- and I'm a preschool teacher. I did not grow up with any either. But I spend a lot of time in a small town nearby, and when I read their newspaper (which features local kids a lot) and listen to names at playgrounds etc it seems Grace is one of the most common names there.

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A Grace will likely get called Gracie at some point, but if she doesn't encourage it it's unlikely to stick. Personally, I love Gracie.

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I think Grace makes a beautiful first name. A bit tired as a middle name, yeah, but if it's meaningful to the parents then great.