Steemit won't die off 100% but I don't think it will thrive either @kod3g3ar. It is too generic and often ends up being the dumping ground for Dapps.
One example is @steepshot. Steemit is supposed to be a blog platform but @steepshot photos with very little text are also published on @steemit.
Another example is @partiko since it is starting to resemble Facebook. People might start treating it like Facebook, but the posts will still get dumped on the Steemit feed.
There is also a possibility that junk Dapps will be created and their content will find their way to the Steemit feed.
Dapps have an advantage over @steemit in that they can create a specific purpose such as streaming, blogging, photography or crowdfunding and can format their website or app to reflect that.
Steemit on the other-hand doesn't have that luxury since it is mainly used as a sample site for what can be acheived through the Steem blockchain.
Because of @steemit's position as the "sample site" I think SMTs will take center stage at one point and Steem as a currency will take a major hit. That is when I plan on investing since I think Steem will benefit from SMTs in the long-run but not immediately.
I would love to know your thoughts about buying into Steem and when you think it is a good time to buy. I personally think the downtrend won't cease until Steem touches 50 cents but I am also looking to see if I can buy-in even lower than that.