Not just RF, also optical communications. Really, the only domain left where PAM transmission is used is baseband communication for electronics, and datacom for optics.

I prefer a more "physical" explanation - you have two carriers: sin(wt) and cos(wt), and you're modulating bits I and Q onto the two carriers and adding them up before transmitting. Now, mathematically, that's the same as representing the two bits as I+jQ and multiplying it with cos(wt)+jsin(wt). Demodulation is simply multiplying that output with the complex conjugate cos(wt)-jsin(wt), which in physical terms translates to mixing with a local oscillator output and low pass filtering.

There is a source block for your mic and or audio in. That was one of the first things I played with to understand sdr. I remember seeing a strong tone on a waterfall plot that I could not hear, thinking it was an articfact, then looking at the frequency and realizing I wouldn't be able to hear it. Turned out it was a crt TV. That kind of dates the story. Fun to be had.