In a nutshell, ETOPS says how far away a twin-engine plane can be from an airport at any time (for emergency landing purposes). Historically, ETOPS limited twin-engine planes to being within 120 minutes flight time of an airport. More recently, due to experience and engineering improvements, ETOPS regulations now allow many twin-engine planes to be up to 240 minutes from an airport.
For the 787, Boeing is even targeting 330 minute ETOPS. Once they achieve that, there will essentially be no routes outside the range of a 787, leaving passenger capacity as the only reason to consider a super-jumbo. Given fuel costs, and improved route planning, there just isn't enough financial incentive to run a super-jumbo when a modern twin-engine wide-body with ETOPS240 or ETOPS330 will do.
Edit: As a side note, ETOPS improvements are also why all the good ol' 3-engine birds (727, L-1011, DC-10, MD-11) have been put to pasture.