I think something a lot of people are forgetting is how close melee was to death after the brawl release. It wasn't just big tournaments dropping them, it was basically everywhere. What used to be 100+ people locals turned to either no melee, or maybe 15-20 people. However, do to the determination of a few, and the crappiness of brawl, melee survived and came back stronger than ever. It's really unsurprising that PM took a hit from sm4sh, because it's the new and hype thing to come out, but it is surprising how small the hit was. Sure PM, got dropped from two tournies but neither of them had to do with lack of demand, it had to do with other things outside of our control.
So, no, I don't think PM is dying. However, I also don't think PM is really growing as much as it should/could be. I do really think there need to be more big PM events, more PM streamers, more more more. We really need some people to step up, and yes I know it's hypocritical of me to say that when I haven't, but sadly, I don't have the time or means to really do any of that. The little I do is try to drum up as much attendance as I can for my local in my terrible scene. (We had 42 people last time for PM too! I know that's not great, but last time it was like 10 lmao. We almost beat out wii-u entrants, but most of the PM players entered wii-u because why not.