I don't think that the bitcoins are dead, we had alternative currencies before also. It is too early to assume the failure or success of BitCoin. The appeal of Bitcoin is finding a workaround global currency, not because Bitcoin was a better medium of exchange. We have to wait and watch for sometime, there is a bright future for bitcoins and I hope Bitcoin will never ever dead.
Well the price of bitcoin is falling but it doesn't mean that bitcoins is going to be dead that is just normal as it is a decentralized currency and doesn't have a stable price. The people who are seeing that bitcoin is dead, they are the ones who are falling their investments because of bitcoin so instead of liking bitcoins, they are hating it.
Yes exactly due bitcoin will dominate online gambling; it is superior to all other forms of online payments. This is at least a $50+ billion industry. The current bitcoin market is under $7 billion. There is plenty of room for growth so bitcoin will never die.