I find it to actually be a stronger discipline than it was four or five years ago in that it's now recognized in many places as quite separate from design and back-end build. Believe me, I've been a front-end development manager / architect in enough places to see and appreciate the change and I can tell you that there's an appreciable difference in code quality, performance, and maintainability in stuff cranked out by designers and back-end developers and even a rookie front-end developer.
Designers are good at design. Java developers are good at developing in Java. DBAs are good at that sort of thing. HTML/CSS/JavaScript development is it's own specialty with people who are very good at it, too.
Sure, you can hire generalists that can cover all the bases, but in staffing a team of generalists you're going to miss the benefits of a specialist's knowledge. For instance, I know PHP and SQL. I could build a decent enough database to power a site. Is it going to be functional? Sure. Are you going to want your site running on it? Heck no. You'll want a DBA to make sure it's actually going to work. The same is true for the front-end of a site: people can hack away all day in HTML, but do you really want them to? What are they creating?
The above is true with any of the web disciplines (and, in fact, most career paths you'll see): you can find a generalist who can often "get the job done" but, in most cases, if you can hire a specialist you'll get the job done better. Do you want a handyman installing the lights in your living room ceiling or do you want an electrician?
People tend to look down on HTML/JavaScript/CSS, and it has a bit of an undeserved rep as something that "anyone can do." Sure, anyone can do it, but a few do it well.
I know people that have had good experiences with slice-and-build shops, so they are a way to go. I also know people that have had terrible experiences and would never use them again. Just like off-shoring back-end development, your mileage may (and probably will) vary.
Also, I haven't really noticed a dip in postings for front-end devs, and I'm still getting at least a couple recruiter spam calls a week looking for folks like me, so I'd say we're alive and well.