The removed thing is "call-time pass-by-reference", not "Passing by Reference".
You can still pass reference to function, but you need to define function parameter with '&'. When doing on function call, you must not use '&' before '$' of variable, that will cause warning(5.3) or error(5.4).
So, your simple function above will be fixed like this:
<?php
function f(&$v) // '&' is added here
{ return $v->x++; }
$a = new StdClass();
$a->x = 1;
$b = f($a); // '&' is removed here
var_dump($a, $b);
And, in your beginning case, is a different question. $this is a pointer to class instance itself, '&$this' will have same value. Object parameter in PHP5 is already pass by reference, you need not add '&' before them.