The genre's already long-dead (outside of MUGEN and the doujin scene...Oh, and a High Resolution Super Turbo.  )...This just helps dig up the body, piss in the hole and pour maggots over it before covering it again. It better not be the end of the traditional GG franchise, otherwise Ishiwatari's completely and totally lost his mind.
Poor 360-Chan... 
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I disagree, Sammy themselves are still clearly trying with that new high res fighter they're making (Battle Phantasia?), and Capcom's re-entering the genre themselves. I think if these new efforts prove fruitful (Especially the high res ST) we could see heightened interest in the genre from developers.
Edit: Also, the 2D fighting Guilty Gear franchise (Which I was speaking of) isn't exactly long dead when Accent Core just came out.
There's nowhere I can't reach.