I don't believe that chiptune music will die out for 2 reasons:
1. As long as there is still an audience for it, it will live on.
2. It is vastly different from most genres. The most it has in common with is probably electronic music, being that is a sub genre of it, but it is the black sheep of the whole operation there.
I read that kids these don't know about c64 and things like that. I disagree. The more the youtube scene of let's players has broken out, the more kids are aware of video games. I believe that they will find interest in it, just by looking around, as was my way of finding out about. I am 14 at this time, and have been aware of chiptune for several years. It first started with a general interest in video game history. I wanted to get all the old video game systems and such, but then i gradually moved over to music, because of my growing interest in it. With that, came the growing interest in video game music, which ultimately, led to chiptune music. I've grown out of the NES and into C64, because i enjoy it better, and also started making my own music. I've made my friends listen to all my songs, and they weren't totally disgusted by it, so that proves that there is still hope. This proves my first point, plus, the people who grew up on it won't be dying off for another 20 years. Who would even consider chip music dying? I know it's underground, but so are a lot of things. I just hope Chip gets it time in the mainstream eventually. Long Live Chiptune!