It's pretty simple to figure out if you just look at the history of musical instruments. Drums evolved into all the different percussion instruments we have today from thousands of years ago, flutes have been around for a long while, accordions, etc... Obviously we don't see every instrument in every song we hear, but there's a place for those instruments still.
Guitars may evolve and our use of them may change, but things like that don't just die off and never get heard from again. People just use them differently, change them up and suit them to their styles.
What we're really asking here, is whether the use of guitar in its classic sense is dying or not. And even that would be hard to pull off any time soon because so much of it is ingrained in cultural music and tradition. The guitar itself isn't going anywhere. You're just maybe seeing less of it in popular culture than you once did, or less of its use in a classical sense. That doesn't mean the guitar is going byebye, it just means pop culture is capitalizing on different things...
But I guess if you consider pop culture's music views as end-all reality, then I can see how you'd think the guitar was sliding into extinction.
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