Just a quickie post:
I wouldn't say the horror genre is dying, to me it seems more like horror (or atleast the GOOD horror) has gone back to its roots: the indy scene. Because it's gone back to the indy scene, alot of stuff I think is getting missed by people. I myself have just gone back and watched all the horrror offerings of one Adam Green (Hatchet, Frozen, Spiral). With guys like Green, James Wan, (Saw, Dead Silence, Insidious), and the folks behind Paranormal Activity, the future of horror looks bright.