To answer the OPs question, yes HT is dead. They outsmarted themselves. Constantly changing the format from 5.1 to 11.1 in slow painful increments with all different kinds of preferred inputs and outputs. It was nearly impossible to keep up with the "Format of the year club", not to mention the financial burden. Happily back to 2 channel with a sub. Wont even refer to it as 2.1
I agree that the constant changes became annoying. HDMI being the big one that (IMO) pissed serious hobbyists off because it came (seemingly) less than a YEAR after receivers and processors moved to component and then DVI. It went composite/S-Video/DVI/HDMI from 1999 to 2003 (even though some of those standards like S-VHS (S-Video) had been around for a long time) imagine spending 2500 beans on a preamp and then just one year later not only are there more channels, but ALL your connectors are obsolete. Because now DVI has become HDMI and most annoyingly...it's not really an upgrade. So you have a $3000 paperweight.
Of course, that's if you're a slave to marketing.
I happily upgraded from my own $2800 boat anchor processor (the B&K Reference 30) to a $300 (ebay price) B&K Reference 50 Series 2 because of the HDMI debacle. I was giddy that people were literally throwing these wonderful sounding processors away (practically) that featured 7.1 balanced outputs, the best (again IMO) stereo performance of an A/V processor and for the tweakers, a comprehensive (but admittedly pro-level in complexity) setup that to this day sounds fantastic. Ditto my 1995 vintage Definitive Technology speakers that still rock the house (BP2002 powered towers, CLR 2000 center channel, and BPX rears). About the only thing I look forward to finally replacing is the Panasonic projector which will represent a real quantitative upgrade being only 720p but even that allows me to get lost in the story. A well set up home theater does the same thing as a well set up stereo system, it gets out of the way. It doesn't matter if there are 2, 5, 7 or 75 speakers.
In fact, if you look closely, this is the golden age of thrift HT just like the 90's/early 2000s were the golden age of thrift 2-channel. You can "sound bar" all you like, but nothing (yet) beats a pair of powerful subs and big speakers that are properly calibrated to bring you an immersive experience. Those that are saying a stereo pair is enough are either "script central" so they want a great story and watch movies like "The Notebook" which would be just as effective and wonderful on a stage OR obstinate. The obstinate ones will insist that two speakers or a sound bar is enough, rotary phones were the peak of communication tech and there's no need for any other beer than Miller Lite.
And those of you insisting that there are no more good movies... you need to get out more and try something else besides Miller Lite.
1. Spotlight
2, Son of Saul
3. Moonlight
4. The Revenant
Watch those 4 movies and tell me "there are no more good movies. That's just a ridiculous thing to say. There are 200 more where that came from from in just the last 10 years. EDIT: Phantom Meanace and the other two are NOT on the list of 200)