I've read and heard a lot about the death of the historical. HA! These people know nothing. I agree that preferences change for time periods--I remember reading loads of Civil War stories in college but it's hard to find a mainstream publisher willing to take a chance these days. Good thing for small pubs!
Regency--lack of the death of and all that. You can probably put Medieval in there, too. And anything Scottish or Irish.
But what about England of 1666? Or Moorish Spain? Or alternate history? Check out the Unusual Historicals blog for more crazy suggestions.
Nope, I don't believe historicals will ever die. Take that naysayers!