We're not dead yet. Rollei have introduced their Retro 80S in 127 format! This is a huge step back into the mainstream for the format. There's also talk of them making an E6. More details.
Thanks to Walter Degroot for the tip off. I admit the 127 site is slightly out of the loop the last few years - Personal demands on my time mean that I'm simply not able to keep up with things. Hopefully what's here is usefull, and inspires you to digg out one of these cameras even if I can't right now.