Key point is that by "died" they mean "aren't a viable way to make a living". Which is probably true. But, they weren't a viable way to make a living when the internet was new, either, or maybe at any point in between. You can still blog. People can still read it, find it cool, post it to their friends in the social network or other medium of their choice, and then those friends may find it. Just don't expect it to be your new living.
There are a number of authors who do make a living by blogging. WaitButWhy and DaringFireball come to mind but I'm sure there are others. Ads and affiliate links did drive non-trivial dollars to my site in the past and while I didn't do it full-time it was much more viable than it is today.
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