I think "dying" is perhaps a bit of overstatement, but there is some merit to the notion.
Containers may change the game. If you can containerize on top of something like Mesos, Kubernetes, etc - there is no need to run on top of a virtualization layer.
Virtualization was a buzzword, and per se, used for plenty of things it shouldn't have been used for. But it will continue to be a cornerstone in any IT infastructure for the foreseeable future, at the very least until the containers mature to a point where it can replace virtualization because it has near bulletproof sandboxing.
Containers may change the game. If you can containerize on top of something like Mesos, Kubernetes, etc - there is no need to run on top of a virtualization layer.