This is such a silly conversation. Pedal steel guitar is not dead -- there's a live one sitting in my studio right now, just waiting to be fondled!
I think what you guys mean is that pedal steel is not being used in country music as much nowadays as it once was, and that therefore there is not as much paying work for country pedal steel guitar players as there used to be.
Both of those assertions are true, and they sadden me as much as they sadden you, but that has little or nothing to do with pedal steel. Pedal steel guitar is a musical instrument, arguably the cleverest ever designed.
It can be used to play
any kind of music, including a lot of stuff that has never been done before on any instrument. How can you think that pedal steel is "dead?" No musical instrument is "dead" as long as you can get sound out of it!
The music business might be miserable at the moment, and paying work for country pedal steel players might be particularly scarce, but as a musical instrument that is evolving and setting trends and breaking new territory, pedal steel is at the top of the pack. Your cup might be half empty, but my cup is half full!