According to Geek News Central that's the case.

Hmm.  Dead?  Probably not.  Dying?  Slowly.  Sure.

Dead to me?  Almost assuredly.

I can't count the number of times a day I hear "did you see x on site y?" to which I always reply "no".  There was a time, not long ago, where I had bookmarks of sites I would visit every day.  That time is gone.  I have over 500 feeds in my RSSBandit right now, and I read what's new every day.  It's far more efficient.  I only see the new stuff, I don't have to browse the web, I don't have to load the extraneous crap, I just get my content.  When I see sites I like, even blogs, and they don't have RSS (or Atom) chances are I will not be back.  I just don't have the time in the day to go to sites that may or may not have updated content.

As to them being dead to the world, I'd say medium (me) to heavy (Scoble) RSS consumers still make up a small population of the overall web browsing population.  Sites without RSS are in no danger of dying.  But it's growing enough that it's worth thinking about if you run a content site.