No the Predator franchise is not dead. It still has plenty of life in it.
Predators was a success The budget was $40,000,000. It made $52,000,688 domestically and $75.232.420 foreign for a total of $127,233,108 according to Box Office Mojo. It made 3.18X it's budget back.
While it is true that it was a rehash of Predator, it still added some nice new things to the franchise's lore.
The Predator is in Call of Duty as Dovahkiin said and that is a selling point to a lot of people who otherwise would have not picked up COD.
Plus Dark Horse Comics seems to be betting a lot on the A/P/AVP/Prometheus books coming up. I'd say it is a new golden age for the franchise.