Yes. It's been dying at least since the death of WCW, although I'd really say it was probably inevitable from the moment the WW(W)F went national and killed the territory system. All the stars of the '80s and '90s came out of the territory system, but WCW and the WWF were never good at creating stars from scratch. McMahon was only ever really good at taking other people's developed talent and polishing and promoting them into superstars.
As for Japan, I'm less sure what really went wrong there. Maybe a lot of it is down to the end of the bubble economy and general malaise, their aging population, and whatnot. But I think at least part of it can be attributed to Giant Baba being content to run with the Misawa/Kawada/Kobashi trio for basically a decade and never creating new top tier stars for the whole of the '90s. New Japan was always better about moving up the young guys, but the current crop of youngish top guys (Tanahashi, Nakamura, et al) are just the drizzling shits compared to the previous generation. The only cool guy from this generation was Shibata, and he decided he'd rather get his face kicked as a scrub in in K-1 than be a main eventer in NJPW. I guess that says a lot about where puroresu stands (although I heard he's back now?).
I'm sure the rise of MMA puts a lot of pressure on wrestling, too.
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