No, the series is not dead by far, not even in Japan. Nearly 300,000 tickets for the newest movie have been ordered in advanced.
About 280,000 advance tickets for Pocket Monster Advance Generation, which opens in June. It took 2 days to sell the large amount of tickets, surprising promoters who weren't expecting such a positive response considering last year's Pokemon feature only sold 150,000 advance tickets in 13 weeks. The advance tickets for Pocket Monster Advance Generation included a special item for the new Pokemon game.