The RPG genre isn't dying or dead. On the contrary, it has been strengthening of late thanks to the success of titles like Fallout 3, The Witcher, and Mass Effect. It just might not be going in a direction you like.
And the MMO genre really has no influence on the RPG genre, don't try and fool yourselves. Sure, a single property might decide to go a different direction and publish an MMO. But nobody complains that WoW killed the RTS genre because that is a dumb argument, and so is blaming MMO's for a lack of RPG's.