I do not believe it is dying. Evolving perhaps, but not dying.
I also do not believe "rules heavy" games have an uphill battle (as was suggested by an earlier post.) While I understand why such a sentiment might seem to make sense, I also believe there are plenty of gamers who want a more in depth system and a more in depth experience. Also, I feel as though the availability of modern computers makes the barrier of entry into rules heavy games less than it may have been previously.
Anyway... no, I do not believe tabletop gaming is dying.