We should, instead of get up at arms about someone who isn't content with the market, ask ourselves "Why not?" Some people maybe content with the industry, and we get it already: the 90's had one too many Vectorman or Earthworm Jim's. The huge difference between Halo 3 and Earthworm Jim, the creators didn't give one care about what anyone wanted. They created a game they thought was fun, engaging, and original.
No the industry is not dead. The industry is on hiatus.
Getting upset at those who are upset isn't really going to help with progress, it will in fact tell developers that the "milking the cash cow" approach is the way to garner your attention. People sometimes want to pop in a game and turn their brains off, and that's understandable. Not all games should be that simple trying to emulate God of War or Gears of War.
Although I didn't like Bayonetta my wife did, and I could see why she did because of how approachable the gameplay mechanics and style was compared to Devil May Cry.