Toland is dead in a physical sense. It Yut killed him with her Deathsong. His mind/soul still wanders the netherworld where it aids us. Through the Grimoire he basically explains to our guardians how to beat Oryx. He tells us how the Tithe system works and the importance of cutting it off. It's also possible/likely that the existence of the relic in our fight against the daughters and Oryx is only there because of Toland pulling strings in the netherworld.
So yes, Toland is dead, but not gone. With how he freaks out following Oryx's death and our refusal to claim his power, it's possible Toland may try to mantle Oryx to fill the vacuum left in the universe.
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Edited by TeWrecks: 12/21/2015 1:38:23 PMTake a look at Taken Champions grimiore card Toland was speaking in that grimiore to Arach Jalal. Arach Jalal -blam!-ing knows where Toland is and he wants to kill him for some reason. Link: http://db.destinytracker.com/grimoire/enemies/the-taken/taken-champions
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Well Toland is dangerously insane. Sure he's awesome and he'll may end up being more of a "good guy" than the speaker, but he's still incredibly dangerous and unpredictable. Dead Orbit is probably hinting him for a similar reason New Monarchy is hunting Osiris.