I went to a very interesting 'briefing' on Delphi 2010 in Manchester the other day. Pawel Glowacki did a great job of wading through all the new stuff (a show of hands around the room revealed a lot of people on D5-D2006, a few of us on D2007 and fewer still on 2010).
Delphi's days of being popular/trendy might have long gone (if indeed it ever had any) but the product continues to be developed, continues to be an excellent tool for the job of developing Win32 apps, and enjoys a small-but-loyal core support amongst developers and great 3rd party component publishers.
Pawel mentioned that Mac-platform support was coming and I have to say that it seems to me Embarcadero have done as much in the last 18 months or so as Borland did in the whole time between them changing back from Inprise to selling it off to Embarcadero. I think Delphi is finally in the hands of people who want it to succeed (the CEO of Embarcadero used to be a Delphi developer). I'll continue to pony-up my software assurance money every year, my whole software-development business depends on my 20-year investment in Delphi/BPO7/Turbo Pascal.
I don't think it's dead at all, and even though there are surely many other more popular platforms to work on, I don't see Delphi dying off any time soon - it's simply too good at what it does.