+1, I live in the Raleigh, NC area so it's hard for me not to be biased by this area, but I have to agree with bibliobob. There are so many cyclists around here, one of the local municipalities, Apex, is passing laws to help control cycling and the seemingly endless number of pace lines on Saturday morning. I've said several times here on BF that within a 30 mile radius of my house there are around 20 bike shops and that does not include Dick's Sporting Goods stores who also work on bikes.
Mountain bikes, road bikes, hybrids, you name it, they're out there in numbers. College campuses have tons of bikes. The kids in my neighborhood, especially the under 10 crowd are having races in our Cul-de-sac. I don't see cycling as dead or declining at all. If anything, I believe it is the opposite, it's expanding.