Dead - not yet at least, based on what I read in the link.
However:
In the statement, it is clear (to me) that Qt is not going to be used for the new Win7Phones.
This means, that Nokias main energy (==money) will be invested in using Win7.
Based on this link, they are not planing to use Qt for that - but what ever MS tool kits, and they will allow Qt to live for the sake of Symbian (as wasota correctly noted, they have too many devices out there to just ignore them).
However, if Nokia will stop producing new Symbian phones (which I think is likely), then its just a matter of time, (2-3 years?) when Symbian wont be a strong enough reason to keep Qt alive.
My guess is that porting Qt to W7Phone is going to be a rather easy port - so there are good chances a community port is going to appear soon.
I wonder, if the community will then sway with Nokia and MS and leave Qt, or will Qt still continue to be a major player for the Nokia phones - by the community.
I think the community will have to brace its self for the day, that Qt is officially abandoned by Nokia, and probably it will have to turn to be a pure community project.
Thank god, Qt is GPL and now the LGPL licensed, so that MS wont be able to take away (legally) what is already available.
But, we'll have to wait and see, these are turbulent times for sure.
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