I still wouldn't use "click here" in normal writing (e.g., a blog post); I think it's unnecessary and a bit gauche. But I'm happy to do it on landing pages and other places where I really do want people to click there.
Landing pages, big call-to-actions, etc. are a different beast entirely. Especially because it's not always obvious what's a graphic or a link, what's a headline or a link. "Click here" makes it obvious, which is necessary when dealing with anything is not "standard" page content.
Yes, you can print an A3 sized sign to remind visitors to flush the toilet, bolding, italicizing and underlining the text to get their attention. Or you can make a clever doodle or an icon, and make it fit into the bathroom's interior design.
You want your call-to-action verb to match the verb in the user's mind when they visit the site, or they may not recognize it as the action they wanted and skip over it.
I'd guess that people think of coupons as something you "use" more than "redeem", so maybe that'd be a better verb.
But – since it can be tricky to get inside your users' heads like that, I prefer to phrase links like this as a question, like "Have a Living Social coupon?" That way there's much less potential for a mental-model mismatch.
Anecdotally, I did a website recently for a carpet cleaner. Standard wordpress job with his services and things. At the top of the home page, he wanted a link to a form for redeeming living social coupons, which, not wanting to say "Click Here for", I just made as "Reedem Living Social Coupon".
It turned out after a couple weeks that many of his users were not clicking "Reedem Living Social Coupon", but clicking the "Contact Us" link. As a quick fix, I renamed the link to "Click Here to Redeem Living Social Coupon" and bolded the text. He mentioned a week later that this had a noticeable improvement in people clicking the correct form.
People who use the web for scheduling carpet cleanings are not always the same as the twitter crowd. You need to remember who your audience is, not what all your programmer friends prefer.
(And for some closure, I ended up adding a "coupon code" optional entry on the generic contact form for people who still clicked the wrong one anyway.)