Maybe it will live on with the advent of fantasy consoles/computers. PICO-8 and similar systems provide the same kind of time and space limitations as the old systems, which still encourages a certain amount of creativity and ingenuity.
Not just fantasy consoles -- there are modern retro-specced computers out there like the ZX Spectrum Next, the Commander X16, and the Agon Light that are worth messing around with. Also, there is a demoscene for modern machines; it's just that the challenges are different: produce the most dazzling effects with the least amount of code.
