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Is classical chess slowly dying or being killed?

I tend to agree with you, classical chess is alive and well, but the money interest is all on "more games, more often"
Chess is easy to learn but complex to master. Let's face it: 99% of chess players usually play best when they have some time to think. That explains why bullet chess is a farce for most players except top-rated players, and blitz isn't much better. These time controls make for games riddled with errors, lousy play and half-assed moves. It's an insult to the beauty of chess.

So classical chess is the pinnacle of chess and will always be. Instinctively, all chess players know that and that's why interest runs high in Google searches on the classical tournaments. That's because we all know this is where serious chess playing happens. The rest is just silly fun.
In my opinion, blitz chess and classical chess are two different things that cannot be compared, but still belong to each other.

While it's obviously cooler to watch blitz games (because it's faster and more mistakes happen, which makes it more unpredictable), chess itself is much more precise and better understood in classical chess.

So I think blitz chess will be on the rise, but classical chess will not die out. I feel that the rise of rapid chess will only help to increase interest in the game as a whole, allowing for more sponsors and more money for great players (GM+, first division or similar).

In the past, only classical chess was the only interesting option but chess was more boring because a game took so long (at least for viewers who weren't into the game). This possible alternation between long and short games (thanks to digitalisation) could make chess bigger and more important than before.
I believe asking the chess world to choose between online chess and classical chess is a false dichotomy: one is a venue, while the other is a time control. Slow chess is simply a higher level of chess. If you view this game as an artistic / creative endeavor, classical time controls produce the best art. That having been said, in-person tournaments, as a player, can be quite expensive, time-consuming, and annoying to participate in. The World Open in 2022 was an example - all sorts of problems that made it a negative playing experience. So I advocate for classical time controls, online. Let Wesley So play while holding his cat, and let people who can't take off entire weekends and travel around the country be able to play in online classical leagues here on lichess and at that other chess site some people play on :-). If anyone reading this would like to play in G/60 + 30 sec / move classical tournaments on lichess with flexible schedules so you can play when you have time, let me know - I am playing in one now, and we've got a really great tournament director that makes is a pleasure to play, and we do NOT suffer from the "no show" problems in some tournaments.
I played hundreds of OTB games and hundreds of thousands online blitz games. The OTB games will always be dearer in my heart. The faster the chance the time control, the greater the opportunity to cheat. I only play Fischer Random Chess now. Bravo to lichess for its many Fischer Random Chess opportunities.
"Caruana pinpointed the issue pretty clearly. He basically asks, why would Wesley So go stay at a hotel for several weeks, when he can sit at home with his cat and play chess and earn the same money, if not more."

Why the Hell would anybody stay Home if he can earn the same Money travelling around?