Datasets area relatively old technology which is steadily being replaced by Entity Framework. For any new development looking for a standard Data Access technology, Entity Framework should be your primary solution. The Model-Based option feels a lot like DataSets in the designer (you can design your model by dragging tables and relationships to the surface), but Entity Framework can also work directly against your code (EF-CodeFirst) which many people find better, since you have total control over what your code will look like (plus it won't get overwritten each time you save the datamodel).
Unless you are open to 3rd party libraries, in which case there are a couple of great open source alternatives that include NHibernate and a few others.