The Non shooter genre will never die out. It's all supply and demand. Demand for shooters goes up meaning more opportunity to sell, more people will invest in making shooters. The more people invest in developing shooters, the bigger the competition, the harder it is to sell. The harder it is to sell, the less people will invest in making shooters.
The same can be said for non shooters. The less demand for non shooters the less people will invest in making non shooters(move their resources to shooters), the less people investing in shooters means the less the competition and thus the greater chances of selling as a non shooter.
That's why it's all cyclical. Of course the demand for a genre also depends on the quality of games being invested in that genre. All it takes is a few games in a particular genre that is being ignored to sell well and it will start a shift in resources to that genre. And it will have a snowball effect. I think that's what is going on right now with the shooter "genre". When a few of these big budget shooter games start to not become profitable because of too much competition then the trend will start to move back a bit. Hopefully the success of games like God Of War, Halo Wars, Final Fantasy, Little Big Planet, Street Fighter IV and Assassins Creed will start this trend.
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