>"The demoscene died" is a trope that means that the original demoscene feeling is gone for many. If you got into the demoscene in 2005, I doubt you experienced it first-hand, but I am sure you have read about it.
I was in the Demoscene (US) and wrote many demos and intros in the 80's and 90's. I don't write demos anymore, because the pressure to support my lifestyle means I write code for money now, but I do get the same feeling when I watch any of the many demos put out month after month by groups that were around back when I was coding demos, and new groups that have sprung up in the decades since. It still gives me the same wonderment when a C64 learns a new trick. It hasn't lost the excitement for me at all to view an impressive new thing. If anything it's gotten better with time and there are what seems like just as many demos coming out now as there were back in the 90s. I may even fly over to Europe someday to visit a demo party.
>In my personal opinion, after the end of the 90s the demoscene devolved into a "L'art pour l'art" incrowd which is great fun for some of its members, but less so for the general public.
I'm not sure what you define as art, but there are still plenty of demos coming out that push the C64 and Amiga past any limit people thought possible. PCs have evolved and basically have no real limits now with the latest Nvidia cards, but the 64k and lower compos are where it's at on the PC, it's still very impressive what can be done in a few KB. New tricks are still being discovered. New ways to do cool new things are still emerging. It's not necessarily "art" as much as it is clever programming, but maybe some people consider clever programming to be an art?