With Windows XP, you can right-click on the floppy drive and one of the options is to format the floppy. A window will pop-up and it has a check box for "create an MS-DOS setup disk". If you remember the old "setup" command under DOS, that is basicly what happens. The resulting floppy can boot up and run command.com, but nothing else is on the floppy. I did that, and from my MS-DOS prompt, I typed "ver". Oddly enough, I got:
Windows Millennium [Version 4.90.3000]
I have to believe that this represents the latest version of MS-DOS.
DR-DOS is still with us. This is an option if you want to buy a supported product. Apparently DR-DOS forked at some time in the past. There seems to be a free open-source version
DR-DOS/OpenDOS. So there are two versions of DR-DOS available. And there is a very ambitious project called
GNU/DOS which is a basicly a distro of FreeDOS.