I don't think 3DGS is dead!
It has some unique features, not found in other engines (for example it can manage a lot of objects very efficiently, using ABT).

I think it needs only a "lifting", something to revamp some area:

1) more flexible world builder (wed)
2) more shaders simply to be used and ready-to-go (many engines supply cartoon shaders, bump, normal map, deferred light, decent water shaders, etc...) to be used with one single instruction.
3) More affordable price (aligned with other engines).
4) better network support
5) day-night cycle
6) road/river editor
7) etc...

Take a look to the tools supplied by Torque: there are a plethora of tools ready-to-go.

Lite-C and the engine self are really amazing (I love lite-c), but I think we need more modern tools "around" the engine.

Low priority: iOS / Android / Mac (and maybe Linux).