Complicated question.

There's a lot more competition for the same mental-space and if you're 'lazy' videogames provide much of the same sort of thing only without the effort of getting a group together to play or having to use your imagination. MMORPGs have certainly eaten into the same market while providily a sub-par experience - but one you can just drop in and out of at will. That's the advantage, accessability.

That said the market (mostly D&D) is still strong and associated things like CCGs, miniatures games and boardgames still do well.

Dying no, unwell, possibly.

I don't think so. When I volunteered to run a game for my son and his friends, he had enough people wanting to play we were turning some away becuase there is only so much room. And attention-ability on my part. We're running a party of five, and unless we somehow manage to make the dining room bigger, that's where it stays. :)

And there are four other groups that I know of in my area, playing a variety of table top's. Just not so much D&D. There's a lot of white wolf(at the table even! Not larping!) in the area, although there is a new 3rd ed game I'm looking at joining since it's run by a good friend of mine I didn't even know gamed. I really should spend more time with my friends, but he didn't know I played either. He hadn't been in my computer room yet to see the giant bookcases filled with 2nd ed, some 3rd ed, Rifts, Babylon5, some form of Star Trek(I think next gen?), Star Wars, and Palladium Fantasy stuff. I think I'm forgetting something we have books for. :)

Video games are great, but there are just things you can't do. In a table top, there is a freedom that I think is still attractive to gamers. You can go in any house, talk to any npc, go off on any tangents, do whatever you want. Even Morrowind and Oblivion, as much as I love them, cannot top that.

I don't think so. Right now not a lot of new games are coming out because they're all waiting for GenCon, but I have friends in the industry who are very busy working on new stuff.

I also think that the indie games boom (the Forge, etc) is going to be really good for the hobby in general, although the huge number of options might mean that it's harder to get together a group where everyone wants to play the same thing. Most of my best friends are gamers but we can never agree on what to play!

I don't know, but I know if it is, I'll continue until I can no longer recruit players. Only then will I retire from the scene.