The following is just my response to the thought that "adventure gaming is dead". Skip this if you feel it's too irrelevant.
Just wanted to chime in with a thought that's been bouncing around in my head for a while. It may not be 100% related, but I feel that it'll paint a picture of how I believe the "industry" is.
Basically, back in the day we had adventure games, we had RTSes, we had arcade styled challenging games, we had what I'll refer to as (for lack of a better term) "hardcore games". These games typically had much higher difficulty ceilings, or required more work from the player to truly enjoy. I would put adventure games into this category. Now what happened as hardware became less expensive, and the idea of playing video games became less of just a "nerd hobby", more people started getting into them, and as more people got into them, the companies started to notice that they gravitated towards a certain kind of game. This has led us to the present day, with our adventure games, and our plethora of more "mainstream" type games.
Where is this all going? Well, let me try to illustrate it this way. Imagine that back in the day that adventure games typically sold to 100 of the 200 people who played games. That's a pretty good chunk of total players. Companies totally went for that. Today though, adventure games may sell to 100-120 of the 40,000 people who play games (I'm making up numbers to illustrate a point, don't quote me on exact figures). In comparison to everything that's out there, and the amount of effort that companies will spend to please their customers adventure gaming may appear to be dead, when in actuality it's right where it was before, it's just that the pool of players and games has increased. The market grew around it. Adventure gaming is currently a niche genre with growing popularity. Will it ever be "mainstream"? I have no clue, but I know that until it does achieve that "mainstream" status, it'll be considered dead by many.
END RANT
I do agree with suejak in that I feel that there's too much emphasis on adventure games being about story. An adventure doesn't need to have some crazily crafted masterpiece of a story. An adventure can simply be exploration into the unknown. This is what I feel Sierra games did well in the past, and what I would like to see from any new endeavors under the same name. In Sierra games I felt like I was on an adventure, that I was exploring worlds. I've never been able to get into the LucasArts adventure games for some reason and I wonder if it's because of 1. The greater emphasis on story, and 2. The lack of death. Exploration and the threat of death are the biggest things that jump out to me when I hear the term "adventure". I don't care what format the new King's Quest plays in, as long as I feel like I'm an actual adventure, and not just riding along with a highly interactive visual novel with no failure states. I want a game, not a movie that waits for me to figure out what the plot is.