Since SMPP is used mainly by wireless operators, the answer to your question will depend a lot on what market/region/country you are dealing with.
I have experience with Latin American wireless companies, and can tell you that although more and more companies are hiding their SMPP servers behing HTTP webservices (that provide them more flexibility) the SMPP protocol is still a requirement to connect to a lot of Wireless companies, so it's definitely not dead.
And if you look inside those Wireless companies, the smpp protocol is very much alive in their internal networks and in the inter-connections with other carriers.
It's true that the SMPP spec hasn't changed in a long time, but that's not a bad thing actually. The protocol has matured, and there seems to be no interest from the carriers in expanding it to include new functionality, specially because they have found the flexibility they need in custom HTTP APIs
And regarding library implementations of SMPP, Kannel is in active development, although I wouldn't recommend it's use. Unfortunately most of the successful long-term implementations that I have seen of SMPP clients have been home grown implementations