I don't know about else where in the world, but across the "big pond" from you jake (The UK) guitar's are making a come back. Okay, so it's a flag that was being flown by the likes of Limb Bizkit, Blink 182, etc. But now Creed, Offspring, Green Day, Metallica to a point, are leading the way for live music again (people who don't have to mime because they're too busy prancing around the stage). I know that a lot of guitarist won't like the bands I've just mentionde and prefer other guitar styles, but it's that or Britney.....
Don't get me wrong, there room for everything in the music world, but something go on longer than needs be. Perhaps many people would say that about guitars, I don't know. One thing I do know though is that, as long as people like us share our intrest for the instrument, it's not going to go away.