I don't think of it as dead. More a changing art form that is becoming less appreciated.
Much the same way album/CD art has declined from its heyday during vinyl. Some of those double-gatefold albums were beautiful because they had room to use. Now that what most people need is a postage stamp sized (or smaller) icon on their music player of choice, much of the detail just doesn't matter. Roger Dean artwork just isn't the same on the screen of my iPod nano.
Ebook cover art is much the same. With the larger printed format in decline, the cover becomes more about what looks good as a small imagine on the screen. Either on screen when people are shopping, or in the variety of library/catalog systems when you are sorting through them.
As a cover art fan, I can't say I like the change. But I understand the changing media have different needs; what works well in one may not work as well in another.
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