I doubt RSS is dying, judging by the growth in the numbers of feeds on various RSS aggregators. It may simply be the "Really Simple" part of RSS, it doesn't take long to figure out how to make a feed.
I do wonder who is reading, however. Is reading RSS mainly a geek and blogger thing, or will it become more mainstream? I can see that happening if major sites and ISPs allow users to easily subscribe to the feeds of their choice.