3D is not dying.
But I do think that it will fail in the mainstream. 3D movie and TV watching is more of a novelty you do every few months. Its not something that anyone will want to do every day.
3D gaming however may fare a lot better with gamers... but so far PS3 has not given us any reasons to bother. I got to see Wipeout and Stardust HD in 3D and both are rather poor attempts at 3D gaming compared to what is being done on the PC.
For gamers, PC 3D gaming is where its at, but its bloody expensive...however it is expanding every day. More products are coming out (asus 27 inch 3d monitor, many sub 1000 dollar 3d projectors), more content(PGA tour in 3D, 3d bluray movies, 100s of downloadable movies INCLUDING PORN), more games (Mafia 2, Kane and lynch are both 3D certified on PC)...etc.