Name just one game you guys have played as long as LFS before getting bored to death with it.
Do you really think that a new car or track will change anything for more than a month before becomming bored again?
Seriously, I doubt it. Sure, LFS development speed is slow compared to other games, and sure, the grass is always greener on the other side. But I get the feeling that all this talk about the "death" of LFS comes from people bored from a game they played longer than anything else and desperatly trying to get the feeling back of what LFS was once for them (if that makes any sense to you).
And to the actual question: No, it's not dead.