Ghost-
It is definitely dying in Kansas City. You can still get a good crowd out for a special event like a famous live band, but otherwise crowds are shrinking.
Unfortunately many lindy dancers did only lindy hop...doing only one dance all the time will always end in boredom, frustration and finally no dancing. Also, lindy hop seemed plagued by a crop of overnight instructors who taught patterns but had no understanding of technique...I personally saw many dancers quit lindy out of frustration that it never felt "right" or good because they had such poor instruction.
Salsa is huge here right now. It seems to appeal to a much more diverse audience. Also, many Salsa dancers become involved in other styles, like Argentine or Swing or other Latin dances...so I think Salsa has a better chance of surviving over time.
M