I see this thread is 10-years old. I get the Western Writers of America magazine four times a year, and don't see the genre dying, or even being dormant. There are lots of novels, historical books, and movies, and they are doing well. There are also several TV westerns that are quite popular on the cable channels.

My one complaint about western novels is that writers in-general and writing magazines in-particular do not think westerns are legitimate fiction.