For a long time, it looked like big stompy mech action was dead too.
I'm not sure that's a great example, since it IS dead. Remember that incredible Mechwarrior 5 trailer with the delightful phrase 'in-game footage' on the bottom? That will never happen now: The old, and petty, legal battle that hamstrung the previous games reared its ridiculous head, and now, instead of gripping, mission-based immersive game with top notch visuals, we're going to get a multiplayer only, free-to-play game with lowest-common denominator mechanics.
All because a few robots happened to look like a few other robots from a japanese IP that's ABSURDLY protective of its image, never mind that THEY'RE not using the designs any more either.
Gets me good and mad!
On topic: Yes, in general most genres are cyclic. the iPad gave adventure games, even old, retired properties, a second wind, and kickstarter has opened a lot of doors to niche genres and titles. Hopefully enough of those projects will put out finished products that it becomes feasable to have a game that is tailored to a certain customer base, but doesn't have to look like a surefire commercial blockbuster, to get good funding.