Alien Hominid is an average game, nothing good really.
2D games are going downhill, the problem is that certain development teams are leaving the area, while others refuse to leave their roots.
Example - Capcom is working mainly on 3D games lately, sure, they have released Capcom Fighting Jam, but that game is a horrible sprite cut & paste monster which plays like a MUGEN game. Really horrible.
Other companies like Sammy or SNK continue to work with 2D games, they have released games like King of Fighters NeoWave, The Rumble Fish, Guilty Gear ISUKA, and are working on games such as NeoGeo Battle Coliseum, Sammy vs Capcom, etc. It is more than certain that these companies are not about to leave the 2D market.
And regarding doujin companies, well - Melty Blood Act-Cadenza is about to get released for NAOMI, I believe that is a great achievement.
Still, the 2D genre isn't going to die in a definite way, it will most likely get toned down - anyway, considering how "retro" is now mainstream, anything is possible.