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Actually, a GFCI outlet will also protect any "downstream" outlet, too. Can be a pain when something trips and you have to wander all over the house trying to find which GFCI needs resetting. Less of a pain than getting electrocuted, though.
Local code dictates what you can downstream from any single GFCI and how everything should be wired together. As an example, Ontario's electrical code has changed in the past few years with respect to kitchen and bathroom wiring, so even a relatively new home of 5 years old doesn't meet current wiring regulations. I'm sure code around the US has likewise changed in the past 5 or 6 years.
This home was built in 1999 and has only two GFCI outlets. One protects all the bathrooms and one protects all the exterior outlets, so it's easy to reset them if the need comes up. New regulations now require one in the kitchen and AFCI outlets are now required for bedrooms. I won't be upgrading the outlets before I sell the house (something I'm starting to try next week).
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