Manned space flight is anything but dead. If you are in doubt read about "Spaceport America" currently under construction in New Mexico.
What is happening is this. A man by the name of Bert Ruttan (hope that is spelled correctly) built a craft and has successfully flown that craft many times that is every bit as capable as the Space Shuttle. What he also proved was that he could do it for far less money than what has been done so far. He brought in investors with the capitol to really push this forward on a private level.
What in essence is happening is that the space program is being privatized. In all honesty it has been noticed that the Cape in Florida is also a security risk and it will over time be obsoleted and shut down.
In time space travel will become a necessity rather than a luxury and it is also a necessary part of the education of mankind.
NASA and other space organizations will still be involved and there are new facilites under construction in New Mexico with an idea of integrating into the private programs.
How successful this will be in the long term is unknown, but, based on who is behind it and the quantity of money being poured in by private industry and investors, it has a good chance of success.