I do see this quite often, but not usually in restaurants. This year alone, I've seen women nursing in a courtroom, in an airport, and in a park. But woman in question should be exercising some discretion as well. She certainly has a right to nurse her child in public, but she should select a corner booth facing away from traffic.
If she were instead sitting in the middle of the restaurant at a table and simply decided to whip out a boob for junior, it could be a serious distraction for the restaurant patrons. Especially if it is a size DDD boob.