It's not dying, but Canada's global dominance is diminishing and its place in Canadian identity is slowly moving from the center towards the peripheries.
1. Other countries have closed the early development gap and hence overall competitiveness gap, particularly the USA.
2. The finances of playing today are creating barriers that didn’t exist 20-50 years ago, increasingly limiting participation.
3. Overall kid activity levels and participation in sports is dropping across the board.
4. Girls participation in hockey and the women’s game progress is a huge positive stemming the tide of what would be worse overall decay on the boys/mens side.
5. It’s not exactly an immigrant-friendly sport and Canada relies on immigration for growth and continued prosperity, we’ve had something like 6-7 million immigrants over the past 30 years, and I believe roughly 30% of those are from India or China. How represented are those populations in Canadian hockey? Don't get me wrong, I'm by no means saying is has anything to do with racism or anything like that (on a large scale), but it's one of the more difficult games to pick up for a variety of reasons, in spite of some very good grassroots programs and efforts to make the game more accessible.
Canada peaked in terms of a lived collective "hockey identity" probably around the 1980s, it’s a different world kids are growing up in. If I had to pick a single moment as the peak, I'd say Gretzky to Lemieux in the 87 Canada Cup,
Hockey is still a big part of Canadian life and identity, it's not "dying", but it'll never again be what it once was.
There are both positives and negatives from that IMO.