Answer for your question is "yes". It is dying.
Even though i'm a good web developer, i'm using templates. Because , templates are low cost and easy to built and we can give full satisfaction to our customers. When the starting i was developing the websites $100 to $1000. But now a days, i'm able to built website for even for $20 because of these templates.
As my teacher says "Concept of Re-usability will rule the world soon"