Nice way to say it's dead? Will audiences care after the new movie is out?
Arguably, they have spent more money on these conversions that a proper OT restoration would have cost. I can't imagine it's totally going into the crapper without even a Blu Ray release.
The larger question is this a Disney or Lucasfilm decision? I can't imagine Fox being too happy about this, as it was one last chance to make a little moolah.