Paul Graham seems to think so in his "Microsoft is Dead" essay. Looks like linkbait to me.
I, for one, am not feeling particularly dead; especially in my current "47, going on 18" state. ;)
Back to the business:
Are we feared? He says 'no' in his essay. I agree. So many shiny objects for folks to concentrate on.
Do we need to be feared? I say 'no', again. We're living in a next-generation, consumer-driven web world, and the tools and platforms we're offering enable this this world.
Hardly a death knell.