I don't think MTV has ever catered for dance music, the last time I watched it with anything decent on it was when Erick sometimes used to host the Dancefloor Chart.
It has always catered for the masses and if there were a few 'dance' records in the charts they'd play them but it's never been particularly cutting edge or alternative.
The dance scene is very much alive and kicking in UK. I've been to Ministry some nights in the last couple of months and never seen it so rammed, The End has always got a massive queue from opening til 4am in the morning when people are still queueing to get in, likewise with Turnmills and Pacha.
And some of the things I've already heard that Promoters are lining up for clubs in the UK for 2004 definitely indicates that dance music and clubbing is still at the forefront for many people. Yeah there's always going to be people that like RnB (I am the proud owner of all Missy Elliot's albums, 50 Cents album, albums by Biggy and Tupac etc) but the world is more than big enough for everyone to have different tastes in music. It would be a sad world if we were all dance music clones or RnB clones or rock music clones.
This 'is this the end for dancemusic' argument has been going on for as long as I can remember and things change and evolve but I think dance music and clubbing is going to be here for a long long time to come.