A game doesn't die from other game releases, it dies from bad management, bad customer service and treating your playerbase as suckers to be milked.
While D2 isn't dead in the true sense of the word, it smells necrotic, it has to have regular chemo treatments (P2W packages to get the suckers to part with their hard-earned), blood transfusions (free access to the base game to try and pull more players in), lots of vitamin supplements (events that give it a temporary boost but it would have been better served by a more healthy diet of carrots not sticks).
It will linger on as it will be plugged into life support (white knights and fanboys that refuse to accept its had its day and that will keep throwing cash at the ever increasing P2W packages as its playerbase numbers keep declining and the only place to get more cash is from the remaining playerbase, which will decrease the playerbase), the slow spiral down like a toxic treatment that keeps it alive for a little longer but actually makes it a little worse each time.
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