If only... Modelling and kit building isn't dead though. Check out what the customizing community does with modern era toys. Some of the conversion of hasbro's toys that people have done are simply fantastic. Not to mention folks who can take a sheet of plastic styrene and build anything they want out of it!
Also, with the advances in 3d printing people have begun printing their own kits through sources like shapeways.... if you really want to build models there are still plenty of options, you just have to be more crafty!