It is well alive. Sure, we still see some of the same people from 1989, and the average age is certainly going up, but it absolutely doesn't mean we aren't seeing new blood. Styles change, technical achievement is usually seen in the sizecoding or "wild" competitions, while PC demos tend to be more cinematic and focused on art. We are seeing new things, like livecoding shaders and fantasy consoles. Of course, the Amigas and other oldschool platforms are still there, with new tricks being discovered year after year.
There are still regular demoparties. Revision, the successor to Breakpoint and Mekka Symposium is doing well year after year. With the addition of some online events like Lovebyte.
Things come and go, but there is no sign of the scene really being dead. Heck, we even seen older demosceners bring their children to the parties, with some of them already doing cool stuff.