No, it is not dying, you are just not seeing it directly in consumer facing products.
You can purchase 100 MIPS processors for $0.67 a piece. This means you will find these things in refrigerators, microwaves, cars, and pretty much any place that could use a little bit of logic.
ARM processors are slightly more expensive.
Could you point me towards one of these $0.67 microprocessors?
The cheapest ones I've seen on Digi-Key are around $3.