RESTful services still work in those situations where they are correctly applied. Maybe what has happened is some of the less mature and more shrill developers have stepped back from their war on any Web service that doesn't fit their dogmatic rest-tard view of the world. There are plenty of valid XML-RPC based services that continue to run well despite the whining that someone somewhere did not yet have a ruby gem to connect their ruby on fails site to it and that it was simply unacceptable - and so complain on twatter they must!

So in short - no, REST works, use it in the right places, and remember kids - not every Web service or endpoint has to expose a REST based interface.