The word on magicthegathering.com is of the best year they've had in quite some time, thanks to the new approach to the basic set as well as the greater availability of products like the Duel Decks that you can just pick up and play. The people who seem to think Magic is fading would appear to be very much mistaken.
In any case, the whole thread rests on a mistaken notion of the relative importance of D&D and Magic to WotC's bottom line. Magic is their cash cow (along with Duelmasters outside North America) and I wouldn't be surprised if there have been times - the last few months before 4E came out, at the very least - when Magic was subsidizing D&D. This seems to be something that (a) WotC is comfortable with and (b) Hasbro shows no signs of giving a crap about one way or the other.
In any case, the whole thread rests on a mistaken notion of the relative importance of D&D and Magic to WotC's bottom line. Magic is their cash cow (along with Duelmasters outside North America) and I wouldn't be surprised if there have been times - the last few months before 4E came out, at the very least - when Magic was subsidizing D&D. This seems to be something that (a) WotC is comfortable with and (b) Hasbro shows no signs of giving a crap about one way or the other.