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Yes keywords aren't dead. There are many myths & rumors roaming around but truth is SEO will continue to grow. Agreed with Md. Saiful Islam Chowdury SEO is changing with the changing industry. SEO still helps online business to grow with other factors merging into the industry.
SEO industry has been encountring huge obstacles, and one of the most important ones is Google trying to provide behavioral search results based on each user's behavior and previous actions while searching on Google, to enhance the user's experience, which is surely better for the user but at the same time killing SEO, so my opinion for most SME's is to create an optimized website, focus on good content, and go for Google Adwords instead of spending money and effort on SEO, and keep your eye on your analytics account in case any nice surprises occur.
Keywords aren’t dead—not yet. But it has changed significantly, and SEO has changed along with it.
There are still a ton of myths and misconceptions about keywords, keyword density, and optimizing content for search engines in general. So to clear these up, you should take a look at how Google’s algorithm has changed and how you can ensure that your site gets found by bots and enjoyed by humans.