I think it's too soon to declare the XFL dead. McMahon knew what he was getting into and said he was ready to carry the league for 3 years.
So far everything is going as expected. Big interest/viewership early, dropping off week by week. Attendance has been decent outside of LA and NY. The key now is where do things level off and do they bounce back some by the end? Unlike the AAF, which was undercapitalized from the start and went in with fingers crossed, I'm convinced we'll at least see a full season from the XFL.