However, infrastructure is significantly more limited than it is with BTC and a lot of other alts are quickly catching up. LTC still has a sizable edge, but that gap is closing rather than expanding.
Though in fairness, you write this as ASICs are just now starting to take over the network. We're going to have a much different looking picture at the end of 2014. When you look at Litecoin's network difficulty and hashrate, it dwarfs all other alts.
Litecoin's network will never have the hashrate or difficulty that Bitcoin does, because of Scrypt. That limits the amount of hashrate that can be squeezed out of ASIC hardware, relative to power consumption. But in relative terms, Litecoin's network over the next year will likely grow to become just as secure as Bitcoin's is, today...if the current momentum is any indication.
Bitcoin looked stagnant for a long, long time before ASICs hit it, and more attention started getting drawn to it. That attention came from the investment being made in its infrastructure. That vote of confidence was essentially what catapulted it into the consciousness of venture capitalists and investors. So the premise that Litecoin is somehow dying a slow death, while hundreds of millions are being poured into hardware infrastructure seems a tad premature, to me.
Sorry for the lack of response; I was more referring to infrastructure in terms of the usability of LTC (such as merchant acceptance). Multi-payment processors and quicker adoption of other coins in various crypto-currency marketplaces have quickened, so it's beginning to take away from that secondary strong suit that LTC has had.
As for ASICs, I really do see it becoming like it is with BTC; LTC will likely be the standard sCrypt ledger and I don't anticipate it falling by the wayside to any other sCrypt alt.
My apologies for the confusion, I tend to bucket advancements in market penetration as part of the infrastructure and hardware infrastructure as part of security.