Primecoin will recover when the Bear cycle is over.
Being on BTC-e is a big advantage, so XPM is far from dead.
I agree- we're in a Bear market and people are consolidating into Fiat, BTC or into a few of the bigger stronger coins. In a Bull market people will look to diversify again and alts will benefit. The market is still finding a floor, and it may go on a little while yet- if we have a movement up in the market I don't think it will be gradual- it will probably be another strong Bull run from some kind of big BTC news/adoptment. I'm still accumulating BTC and a number of alts at the moment- XPM included.