Psy-trance is dead in the regard that ground breaking releases are very rare. Measured in absolute numbers and combining all subgenres of psy-trance we do get good (non-ground breaking) releases, but combining the total number of releases in a year we do get relative few good releases.
At the moment most of the sub-genres are just refining their formula, some even to death (neo-full on).
The number of labels and artists is too big, and that's probably why we get a lot of safe releases (read the same shit over again). The scene is not big enough to support all these labels and artists. Therefor bankrupts might not be bad. The artists also have a responsibility, they can't release the same tune over and over again.
Then again, if you're a die hard psy-trancer and you're not happy with the current situation of the scene, then do something about it.