There has been a lot of recent discussion on this already. In 'State of the Game' Episode 73, JP, Apollo and Root.Tod discuss this at great length, I believe others like Liquid'Sheth have also responded to Destiny's piece. I think the general consensus amongst those three was that the game needs to change but the way that many people are going about it through twitter and facebook (e.g. #saveHotS) may actually prove to be detrimental in many respects.
I don't think a community such as Starcraft can die given the amount of work that people like Day9, Tasteless, Artosis, JP, and other casters/presenters, as well as the players do for the game. One thing that I've learned from being a part of communities that arn't mainstream is that they are often stronger and longer lasting than those that just act like bandwagons for people to jump on and travel around a bit before they get bored.
I myself have been a constant player of Starcraft over many years, not a great player by any means, I like to play for fun, and if that means a few wins or a few losses, no big deal. I find Starcraft just a really fun interesting game.
I think Blizzard needs to do a lot to improve the game, don't get me wrong, I think the UI on WoL is severly lacking in anything that presents the actual viability of the community at large. I think the UI on the game actually leads us to this thinking that the game is dying or the community is dying given that it feels so empty (See Destiny's Post, 'State of the Game' etc).
I was happy to see that Blizzard extended an invitation to some players to have discussions on how to improve the game. I do not necessarily think we'll see any improvements to WoL, but perhaps several imrpovements can be made to HotS. I think, speculatively, Starcraft does not bring in as much money as other franchies of Blizzard, especially WoW, and D3 given the Real money auction. So more a purely business perspective Starcraft doesn't seem to be a major concern of the company if it doesn't make much money.
It will be interesting to see if Blizzard does anything further by increasing the discussions between respected people in the community. I don't know if discussions with competitive players would do anything to improve the game as much evidence suggests the vast majority of players don't play competitively.
No Starcraft isn't dying. If there was a mass exodus, which there doesn't seem evidence to suggest, then perhaps, but given that on a given daily we are likely to see between 5000 and 8000 viewers and the viewership of the GSL Code S final was also fairly large I don't think there is any evidence to suggest any lack of community engagement.
It may be slowing down, but I think that the community is doing a good job in trying to build engagements. I think deeper engagement between Blizzard and the Community may help and also, us as community members (especially in NA and Australia etc) trying to educate people on esports and grow the community in our own countries may help.
If you can show Blizzard the viability of esports and Starcraft they may be more willing to produce better results.