The modern laser site has moved over for the red dot site.
The red dot site presents the laser dot on a glass screen in the reticle of the site for the shooter. The dot tracks the facing of the gun, much like how a laser site works, but it doesn't project anything.
Fundamentally, put the dot on the target, and pull the trigger. It's simpler than normal iron sights as you don't have to line them up, and it compensates if the gun is not quite held properly.
Advantages over a laser site are that it doesn't project (so, no tracing beams through smoke, no need to actually see the dot on the target), the dot is the same size regardless of range. It important to note that most dot are rated in "MOA", as in a "2 MOA" dot, saying the the dots diameter covers 2 Minutes of Accuracy. Essentially it mean that the dot represent 2" and 100 yards.
Neither generic laser or dot sites compensate for range or conditions. The red dot sites tend to be parallax free, and easy to use with both eyes open, in contrast to even low power scopes.
The new rifle scope on the new US rifles (the M7) does have a laser, I think it has a red dot as well. It also has a ballistic computer. The laser (I think) is not used so much for siting as simply point. "See where my dot is? Attack that" kind of thing. It's also has visible and infrared (so you can point at things that your night visioned buddies can see). The laser is also used for range finding to feed the ballistic computer so when you put the 'dot' on a target 500m away, it's compensating for bullet drop and it also has environmental sensors that it can adapt for as well (I have no idea if it can do anything about wind, however).
Pretty neat piece of kit. Hopefully it will actually work in the field, they're still working on that part.