It is the other way around. OpenStack is dying, we're just watching how vendors respond.
Rackspace and HP needed OpenStack to take off in order to generate demand for their public clouds. When that didn't happen HP shut down its cloud. Rackspace couldn't do that, their cloud accounted for too much of their revenue, so what we're seeing is their fallback plan.
Interesting anecdote: yesterday the OpenStack Foundation sent out an email announcing the speakers for the upcoming OpenStack summit. The subject line: "Hear from Google's VP of Cloud Platforms at OpenStack Summit Boston".
Exactly. Openstack's strength building out a private cloud infrastructure. Deploying it is still a major undertaking (wish things like fuel were more reliable).