Iang gives us an obituary for e-gold.
E-gold is only dead the way Napster is dead. Like Napster they demonstrated that the business model was viable, and also demonstrated that as soon as you started transferring serious money the US government would come after you. As a result, there are a lot of replacements for e-gold, which the US government will find hard to shut down, notably Pecunix and Webmoney.