Vita is not only alive, but it will go on to be a successful system.
Japan is the key; they love handhelds over there, and with the right games Vita will take off there big time. God Eater 2 is a good start and a virtually guaranteed hit, and Monster Hunter will inevitably come to it as well, perhaps Portable 4th. Vita is already outselling the PS3 and PSP there on a weekly basis. It's a sleeping giant waiting to be awoken.
It will happen, mark my words.